Realtors anticipate a strong spring season due to pent-up demand

New and energetic listings climbed in January, making Denver space realtors optimistic for the spring promoting season regardless of the Federal Reserve not planning to chop rates of interest in March.

“As we kick off the brand new 12 months, consumers seem like sporting rose-colored glasses, able to put themselves again in the true property market as they lastly have extra decisions,” stated Libby Levinson-Katz, chairwoman of the Market Tendencies Committee, in feedback included with the month-to-month replace from the Denver Metro Affiliation of Realtors.

The variety of new listings hit 3,280, up 15% from 2,859 in January 2023. Energetic listings hit 4,871, up 18% from 4,120 a 12 months earlier.

The median closed value hit $565,000, up 5% from $539,250 in January 2023, whereas the close-price-to-list-price ratio at 98.4% was up .25% from 98.2% a 12 months in the past.

Susan Thayer with the Thayer Group, a member of the market tendencies committee, stated low-interest charges saved sellers from leaping into the market in December.

“December 2023 felt like consumers put the brakes on their house searches, and sellers appeared to be strongly connected to their low-interest charges,” Thayer stated. “However in January, consumers shifted into excessive gear as sellers began to interrupt their bonds with these low-interest charges. The spring shopping for and promoting season appears to be ramping up early in 2024 — and we’re right here for it.”

Levinson-Katz agreed the spring promoting season might be robust on account of pent-up demand and extra favorable lending phrases.

“Whereas it’s not a constant prediction if rates of interest decline under 5 %, we might even see tighter stock and extra aggressive situations as soon as once more,” she stated.

“Many consumers are ready on the fence for rates of interest to proceed their downward descent. Nevertheless, attempting to time the marketplace for decrease rates of interest earlier than the market heats up might end in consumers paying extra in the long run in the event that they discover themselves in a bidding struggle.”

For properties priced $1 million and above, January noticed a flurry of recent listings, up 40% over final January. Many consumers had been simply as prepared, with pending house gross sales up 23% over a 12 months in the past.

“Competitors between consumers is selecting up and can proceed to take action within the months forward as we enter our busier time of 12 months in Denver Metro and might count on purchaser and vendor exercise to ramp up additional after the Tremendous Bowl,” stated Nick DiPasquale with West+Predominant who’s additionally a market tendencies committee member.