So How’s The Market?
Reviewing the first two months of 2024 and what the expect from Residential Real Estate
Market Details
- Significant rise in inventory up 44.5% over March 13, 2023 and up 20% from February 14, 2024.
- We predicted that inventory would rise to 8000-9000 units by this summer, and it most certainly appears to be on track for that type of inventory.
- When inventory rises exponentially at a faster pace than the number of sales per month, price will be affected to correct to the lack of sales.
- The projection of interest rates that may adjust downward to the 6% range, which buyers are now seeing as the normal rates we will see moving forward, we are liable to see a very flat pricing model
- 2023 really had price adjustments already, due to sellers paying concessions for buy downs and inspection resolutions of between 3-5%.
- The market will continue to concessions and some sellers that are needing to sell will adjust their price downward based upon their personal motivation.
- There is also a large equity position, so those potential lower prices deals will not be across the board.
- The number of homes under contract is 11.1% lower than 12 months ago and only 124 homes higher than February 2024. This measures the future of closings coming up over the next 60-90 days.
- If the “Pending” contracts remain weaker than 12 months ago, the number of sales in 2024 will end up approximately in the same range as the 2023 year.
However, we do see a pent-up demand from both buyers and sellers and any movement of interest rates to 6% or below 6% will bring a larger number of buyers back to the market. Watch over the next 90 days the “Pending” trends and interest rate movements to predict where we will be as a market in the summer of 2024 and how we will finish the year.
This data is taken from ReColorado on March 8th of the 8 County Denver Metro Area.
