Affordability, interest rates temper home sales despite listing increase

As active listings increased in Denver and statewide, home buyers willing to take the plunge have more options and purchasing power.

According to the February market trends housing report from the Colorado Association of Realtors:

• New single-family listings hit 4,284 in the seven-county Denver metro area in February, up 12% from January and 13% from a year earlier.
• Condo/townhome new listings hit 1,654 in the Denver metro, up 10% in February and 18% from February 2024.
• Active single-family listings in the Denver metro are up 15% from last year at 8,019.
• Denver’s active condo/townhome listings are up about 33% at 3,562.
• New single-family listings climbed about 4% statewide from January to February but are up 8% from a year ago.
• New condo/townhome listings statewide increased 4% from January and are up about 13% compared to a year ago.

February’s increases came on top of January’s record availability. Last month, the Denver metro area saw nearly 4,000 new single-family listings, a 105% increase from December and 27% from last year. There were 6,682 new listings statewide, up over 90% from December and 23% year-over-year.

The median sales price for single-family homes in the Denver metro area increased by nearly 2% from January to February to $620,000, 3.3% higher than a year ago.

The median price of condos and townhomes in the Denver metro held steady in February but is down 3.6% compared to February 2024.

Statewide, the median price for a single-family home is $575,000, up 1% from January and increased about 4% over February 2024.

The median price for condos and townhomes statewide is $409,000. The price fell by 2% from January and is down 4% from February 2024.

Kelly Moye of Compass said that despite increased activity, buyers remain cautious, prompting sellers to revise their strategies and pricing to attract interest and close sales.

“As the market continues to evolve, it remains to be seen when buyer confidence will fully return,” she said.

Although home inventory is abundant, buyers remain fearful due to economic uncertainties, a turbulent political climate, and high inflation, said Colorado Springs-area realtor Jay Gupta.

“Regrettably, these factors are severely undermining consumer confidence in making housing purchases,” Gupta said.

To remain competitive and close sales, sellers must consider offering concessions, be flexible in negotiations, and set a competitive asking price.

“We’re seeing many sellers willing to help with concessions to buy down the interest rate or pay some closing costs for the buyer,” said Aurora-area realtor Sunny Banka.