Metro Denver ended the year with a lot more homes and condos listed for sale than in 2023, and those listings took a lot longer to sell, despite a similar number of closings each year, according to a monthly update from the Denver Metro Association of Realtors.
“The housing market in 2024 mirrored many of the challenges seen in 2023, with elevated mortgage rates continuing to shape buyer and seller behavior,” said Steve Danyliw, a member of the DMAR Market Trends Committee and local Realtor, in an annual recap included with the report.
One of the most noticeable trends last year was a widening gap between condos and townhomes or attached homes, which saw sales drop 15.5% last year, and stand-alone or detached homes, which saw sales rise 7.84% and snap a three-year stretch of declines. Combined, sales were up 0.9%.
The median price of a detached home sold last year rose 2.28%, while the median price of an attached home was down 1.9%, and that gap widened as the year progressed. In December, the median sales price for detached homes rose 4.9% year-over-year to $639,700, while the median sales price for attached homes fell 4.4% to $394,000.
New listings rose 15.8% for detached homes last year, but a more modest 5.2% for townhomes and condos.
Danyliw said the disparity raises an important question: Is the demand for attached housing falling, given rising HOA fees and other costs, or are more condo owners hanging onto their properties and renting instead of selling them?
Active listings in the 11-county region DMAR tracks rose from 4,971 at the end of 2023 to 6,888 at the end of 2024, a gain of 38.6%. That’s still below the historical average of 11,986 available listings at the end of December in records going back to 1985.
As the year ended, buyers had more than four times as many properties to pursue compared to the record low inventory of 1,477 reached in December 2021.
A large 26% drop in active listings occurred between December and November, but that turns out to be a fairly common seasonal pattern as sellers pull back and recalibrate, said Amanda Snitker, chairwoman of DMAR’s Market Trends Committee and local Realtor.
“It’s a combination of homes coming off the market during the holidays with the intent of returning in the new year and those listings that expire. For simplicity and just human nature, I think a lot of listing agreements terminate on Dec. 31 each year. So, anecdotally, December sees more expired listings than other months,” she said in an email.
One result of the rising inventory last year, or perhaps a contributor to it, is that listings took a lot longer to sell.
Detached homes spent a median of 39 days on the market in December compared to 29 days in December 2023, while attached homes were spending 44 days versus 31 days. And while the holiday stretch can be tough sledding for sellers in any year, their patience was especially tested in 2024.
Originally Published:
