September 2024 Denver Metro Market Watch

Lower interest rates and a dip in home prices have inspired buyers to re-enter the Denver Metro housing market. According to REcolorado’s September data, 3,805 home contracts were executed, marking a 28% increase from the same time last year and a 5% rise compared to August. The motivation comes as potential buyers found a broader selection of homes available, with inventory levels not seen in a decade. Sellers contributed to already high inventory levels by adding 5,029 new listings to the market in September—10% more than last year—though slightly fewer than in August.

Homes are spending more time on the market before selling, with an average of 26 days in REcolorado’s MLS system, an 11-day increase compared to last September and 4 days longer than August’s average. Active inventory surged by 50% compared to last year, with 11,143 homes listed for sale by the end of September.

Amid these local shifts, consumer confidence has also seen improvement. The Fannie Mae Home Purchase Sentiment Index^® (HPSI)  rose to 73.9 in September, the highest level in over two years. This uptick reflects growing optimism that mortgage rates will decrease over the next year. Despite this positive sentiment, only 19% of respondents believe it’s a good time to buy a home, though 65% say it’s a good time to sell.

Closings on home sales in the Denver Metro area were down slightly, with 1% fewer transactions than September 2023 and 14% fewer than last month. The median home price dropped 2% year-over-year to $575,000 and was 3% lower than August.

In the rental market, activity also slowed. REcolorado reported that 289 rental properties were leased in September, down 6% from last year and 12% from August. The median rent decreased by 4% year-over-year, while 411 new rental listings were added—a 19% drop from the previous month. Active rental inventory increased slightly, with 738 properties available, 4% more than last month.

As the market adjusts to changing economic factors, buyers and renters alike are finding more options. A key indicator of future market activity is the number of pending listings, which typically leads to increased closings in the following months. With the uptick in pending listings this September, the Denver Metro housing market is poised for more closings in the coming months and a strong fourth quarter.

Source: https://recolorado.com/september-2024-market-stats/