Denver Metro 6 County Inventory Count November

Market Fun Facts (11/08/24): The presidential election is behind us and the Feds dropped rates for a second time!  What affect will this have on our real estate market as we enter into the final months of 2024?  To answer this question NeXstep continues to monitor inventory levels across the 6 County Denver Metro. For the the first time in 10 months we see our first decrease in inventory levels; active listings are down by -361 listing for a total of 10,093 active homes for sale.  This is the 4th time since we started recording in 2020 that we have broke the 10K inventory levels.  Sold homes had their 1st increase in sales in the past 5 months; up slightly by +27 additional sales for a total of 3,461 sold units.  The increase in home sales and the decrease in active homes for sale has lowered our monthly absorption rate from 2.88 months to 2.77 months.  Broomfield county now has the lowest absorption rate at 1.99 months and Denver county has the highest rate at 3.81 months. Denver County leads with the most active listings at 2,834 and Broomfield County continues to have the fewest listings at 211.  Current publications indicate a balanced real estate market would need a minimum of 18,000 listings.  Thinking about selling…let’s talk!

What do these numbers mean? To help understand what these numbers mean to our local markets we are now including the number of sold comps during the past 30 days or 1 month.  Looking at our sold numbers over the past month allows us to calculate a monthly absorption rate.  An absorption rate tells us how many months it would take to sell off our entire inventory should we have no new listings.  A balanced market is considered 6 months.

Stabilizing in most metrics with improvement in others.

Inventory appears to be stabilizing, with steady buyer activity, signaling a sense of balance in the market as we move from September into October.

Buyers who have been waiting for better market conditions are now finding more options available. Sellers are increasingly open to negotiating, making repairs, offering concessions, and accepting contingent offers to get deals done. This creates an excellent opportunity for buyers to take advantage of the increased negotiating power they currently hold, which may shift if rates drop and competition intensifies.

The number of active listings has remained consistent compared to last week, though inventory is significantly higher than this time last year.

New listings have increased both week over week and compared to the same period last year, while “coming soon” listings have dipped slightly. Pending transactions have stayed fairly flat, and the market’s supply of inventory has held steady.

The Odds of Selling rose last week but remains below the historical average from prior years, reflecting ongoing market dynamics.

Showings have decreased slightly from the previous week but are up compared to last year. Homes are spending more time on the market, allowing buyers more time to make informed decisions.

We’ve seen a rise in price reductions this week, with a larger percentage of homes lowering their prices before going under contract. The size of these price reductions has also increased

I hope this analysis helps you better advise your buyers and sellers in our ever-shifting market. Should you need further assistance, please do not hesitate to reach out. If I can help you in any way, I would greatly appreciate your recommendation of First American Title to your clients.

Special thanks to Megan Aller with First American Title for the market stats/narrative.