Feb 2023 Market Report
Feb 2023 Market Report

The Denver Metro housing market experienced a surge in activity from January to February as the busy home buying and selling season got underway. According to REcolorado data, the number of new listings and closings increased month-to-month, and the number of listings that moved to Pending also saw an uptick, which is a leading indicator of future closings. After four months of decreases, the median closed price of Denver Metro homes increased 4% from January to February. However, median prices are still down 3% from last year at this time.

The Lack of Available Inventory Still Haunts the Real Estate Market

Inventory challenges are expected to persist in 2023, thanks in part to what economists are calling the “lock-in” effect. Many would-be sellers who are locked into low mortgage rates are choosing to stay in place rather than putting their home on the market. The number of new listings that came on the market was lower than any February since 2010.

The Denver Metro rental market experienced year-over-year increases in activity, according to REcolorado data. Compared to last year, the number of leased properties doubled, and leased prices are up 6%.

Here is a summary of the Denver Metro housing market activity in February 2023:

Closed Listings:

  • 31% more Denver Metro homes closed in February than in January.
  • Closings were down 18% compared to this time last year.

Closed Prices:

  • The median closed price for a Denver Metro home was down 3% as compared to last February.
  • There was a 4% month-over-month lift in median prices as a result of increased buyer activity.

Days in MLS:

  • Homes moved off the market more quickly in February than in January as home shoppers jumped into the market and executed contracts on properties.
  • When looking at previous Februarys, shoppers are taking longer to make home-buying decisions.

New Listings:

  • There was a seasonal increase in the number of new listings to come on the market in the Denver Metro area in February.
  • The number of fresh listings sellers are bringing to the market is lower than we’ve seen in previous Februarys.

Pending Listings:

  • The number of contracts executed on homes was 18% higher than last month.
  • Compared to previous years, the number of pending listings is lower as a result of higher home prices and interest rates.

Activity by Price Range:

  • The $500-600,000 price range saw the most activity in February with 22% of closings and 18.8% of fresh listings.
  • Homes priced in the $300-400,000 range moved off the market the quickest, in a median of just over 2 weeks.

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Another Crazy Real Estate Season is Already Starting Strong for Sellers

The month of February saw an increase in buyer activity in the real estate market as home shoppers began to prepare for the upcoming busy buying and selling season. This resulted in a significant rise of 18% in the number of contracts executed by buyers and sellers compared to the previous month. However, due to the increase in home prices and interest rates, the number of pending listings in the market has decreased in comparison to previous years.

Number of Active Real Estate Listings Denver MLS

As the number of available listings continues to remain low, it is crucial for real estate agents to ensure that they have a complete set of available listings in the MLS (Multiple Listing Service) to combat the low inventory and better serve buyers. This will help agents to provide their clients with a wide range of options and enable them to make informed decisions.

Still Might Be a Little Harder in SOME Areas for Sellers

Despite the increase in buyer activity, the forecast for sellers remains challenging due to the “lock-in” effect. Many homeowners are choosing to stay in their current homes to keep the lower mortgage rate they had previously “locked in”. This trend is expected to persist in 2023, resulting in a lower number of new listings coming onto the market. In fact, the number of new listings that came onto the market in February was lower than any in February since 2010.

Sellers Still Need the Best Real Estate Agents to Buy and Sell a Home

In light of this, real estate agents need to get creative to generate new listings. One way to do this is by using the suite of tools available through REcolorado to build their farm area, keep in touch with clients, and create business opportunities. By visiting the Grow Your Business Learning Path on REcolorado.com, agents can learn how to leverage these tools effectively and expand their business.

Rental Market in Denver MLS Area

The rental market in the Denver Metro area has also been active and strong in February. According to REcolorado metrics, the number of properties that were leased increased by more than 50% compared to the previous year. Additionally, leased prices have increased by 6% year over year, indicating a healthy demand for rental properties in the area.