Colorado’s housing market delivers January burst of new listings

New listings skyrocketed in the Denver metro and across Colorado in January.

The January Market Trends Housing Report from the Colorado Association of Realtors recorded an 80% jump in single-family listings and more than an 88% increase in townhome/condo listings compared to December.

Statewide, single-family listings increased 75% in January, while new townhome/condo listings jumped 73.2%.

“In Boulder and Broomfield counties, the real estate market woke up on Jan. 2,” said Boulder/Broomfield-area realtor Kelly Moye.

“The combination of lower interest rates and general optimism of a new year brought buyers out to look and sellers ready to list.”

More buyers enter the market

With interest rates stabilizing, more buyers are ready to enter the market, said Fort Collins-area realtor Chris Hardy.

“This is bringing more buyers out of hibernation and creating pressure within an already inventory-challenged environment,” Hardy said.

Buyers who waited during the fall and holiday season took advantage of the new options, with the number of pending or under-contract homes up 8% for the month over January 2023. The number of pending or under-contract homes in the Denver metro increased 10% over last January.

That kept the percent of list price received at 98% for both the metro and statewide.

The median single-family home price increased to just under $600,000, up 1.7% from December and 5.3% from a year earlier.

“January is always an interesting month,” said Aurora-area realtor Sunny Banka. “With the snow and cold weather we endured, one would think a slower market. Not so much in Aurora, where the cold and snow did not stop buyers looking for a good deal before the spring market heats up.”

Looking ahead to spring

Denver-Douglas County realtor Cooper Thayer said year-to-date closings are tracking within a 5% margin of last year, but he anticipates strong sales this spring.

“Buyers are becoming acclimatized to the new interest rate baseline in the 6% range, and sellers are shifting their mindset away from trying to time the market and back towards acting based on wants and desires rather than needs,” he said.

With more inventory, sellers must watch pricing and prepare to negotiate.

“The spike in activity last month is evidence of a large backlog of buyer and seller demand, and we can expect to see a strong, competitive market as we move into the spring season,” he said.