This market report provides an overview of the real estate trends in Metro Denver for the month of April 2023. The report highlights key statistics related to active inventory, demand for homes, months of inventory, pricing trends, multiple offers, and days on the market. By analyzing these indicators, we aim to present a comprehensive understanding of the current state of the Metro Denver real estate market.
Market Report: Metro Denver Real Estate Trends – April 2023
Active Inventory: In April, the active inventory in Metro Denver experienced a modest increase of 2.8%, reaching a total of 1,236 homes for sale. When compared to historical data from 2013 to 2019 (excluding pandemic years), this figure falls below the average of 1,691 homes for sale during April. It is important to note that inventory is expected to remain tight throughout the year.
Denver MLS and Mountains Demand for Homes
The demand for homes, as measured by pending transactions, witnessed a decline of 16.6% from March to April, with only 1,096 homes going under contract. Although closed transactions increased by 15.9% due to a robust buying period in March, both pending and closed transactions showed a decline of 24.5% and 22.8%, respectively, compared to the same period last year.
Denver MLS Months of Inventory
The months of inventory, indicating the supply of homes relative to the demand, remained at a low level of 1.0 month. With an increasing number of buyers in the market and limited housing supply in certain geographic areas, bidding wars have resurfaced, with approximately 34.6% of homes being sold for prices exceeding the initial asking price.
Denver MLS Pricing Trends
In April, the median sold price for attached residential homes experienced a marginal decline of 0.4% month over month, settling at $405,000. Similarly, the average sold price decreased by 1.7% to $463,390. While there has been a decline in prices, it is noteworthy that homes sold through multiple offers fetched an average of 2.6% over the initial asking price, although not as severe as observed in the previous years (2020-2022).
Days on the Market Denver MLS
The average and median days on the market witnessed a significant decrease compared to the previous month. The average days on the market plummeted to 25 days, indicating a swift selling process. Furthermore, half of the homes (median) that were under contract in April had an astonishingly short time frame of 8 days. Impressively, 41.3% of homes were under contract in 8 days or less, although this figure experienced a decline of 20.0% from March. Notably, homes under contract within 7 days were likely to receive 101.4% of their original list price, showcasing the competitiveness of the market.
April 2023 Real Estate Market Recap
The Metro Denver real estate market in April 2023 demonstrated a rise in active inventory, albeit below historical averages for the same period. Demand for homes experienced a decline in pending and closed transactions compared to the previous year. With only 1.0 month of inventory supply, bidding wars have become prevalent, leading to homes selling above the initial asking price. Although attached residential home prices experienced a slight decrease, multiple offers were still observed, resulting in prices exceeding the asking price by an average of 2.6%. Furthermore, the market displayed rapid sales with significantly reduced days on the market, indicating a highly competitive environment. Despite these fluctuations, inventory is expected to remain tight, indicating a continued challenging market for buyers in the coming months.