Denver Metro home shoppers saw a boost in inventory levels in January as sellers brought 3,414 fresh listings of homes for sale to the market, 17% more than last January and nearly twice as many as we saw in December. At the close of December, there was 167% more home listings actively available for sale as compared to last year at this time. As mortgage rates became more favorable, buyers took advantage, executing 3,271 contracts on homes, 6% more than last year and 44% more than last month.
Home closings inched up over last January, while median home prices saw their biggest gains since April of 2023, thanks to strong performance in the luxury market. The number of closings of homes priced at $1M or more was up 20% from last January. Lack of inventory of affordable homes will likely remain a challenge for buyers in 2024. REcolorado New Listing data shows a 44% year-over-year increase in listings priced at $1M or more, while listings priced at $500,000 or less increased by only 8%.
Homes took a median of 37 days to move from actively available in REcolorado MLS to Pending. January saw sellers testing the market as they price their homes for sale. At the same time, buyers pushed back, which led to price reductions. According to REcolorado data, in January, 48% of homes sold at less than the original list price. The average price decrease was $21,000.
Denver Metro Rental Market Sees Steady Gains
In January, 309 properties were leased using REcolorado MLS, 11% more than January 2023. Compared to last year, the median leased price increased more than 2%, with the median leased price per square foot up 5%. Single-family homes garnered the highest leased prices in January. Throughout the month, 384 new rental listings were added to REcolorado MLS. At the close of the month, there were 599 active rental properties available in REcolorado MLS.