February 2024 Housing Update

February Continues to Boost Inventory
Inventory levels at the end ofFebruary were 25% higher than last year and 176% higher than two years ago thanks in part to sellers bringing listings to the market. Data shows double-digit increases in the number of New Listings for the second consecutive month as sellers brought 4,267 homes to the market.

Buyer Activity Up and Days on Market Down
Home shoppers were active in February. Throughout the month, they executed contracts on 3,454 home listings. The number of listings pending sale in February was less than 1% higher than last February and 11% higher than last month. Those homes stayed actively available in REcolorado MLS for 25 days, 2 days less than last February and 12 days less than last month.

Median Home Prices on the Rise 
February brought both year-to-year and month-to-month increases in home closings. Strong demand pushed closing prices up. February’s median closed price was $575,000, 3% higher than last year at this time.

Commentary:
The housing market is changing by the month. Inventory is way up as you can see and yet home prices are up as well. The Denver market is defying basic economics right now. How long can it continue in this manner? That is the question we all wish we could answer. The Spring market is here and we will have to see what opportunities present themselves with such a large increase in inventory. Buyer’s and Sellers waiting on interest rates to come down is already having an impact on the market. Additionally, recent economic statistics are shining a light on the sticky inflation data that the FED does not like. We will have to wait on those lower rates that were predicted to kick off in March until those numbers begin to change. As always we will be watching for opportunities for our clients and sharing them here every month.

Nar Settlement:
We cannot put out an update without talking about the NAR Settlement. There is a lot of information floating around correct and incorrect. (Click Here to Read More) . The effects of this are unknown and will remain that way until the folks that regulate us (DORA) wrap their brains around what will be required. They have about 10 weeks to do so. There are some facts about Willie and I and the way we approach fees and commissions with our clients that we think we need to make crystal clear. Willie and I use Buyer and Seller Agency Contracts (required by the state) and have since we started in the business (2007/2008). Those contracts explain how and what we get paid. They also disclose what is being paid out to Buyer Agents if we are listing a property for sale. We have always been completely transparent, and always will be.
Our MLS (multiple listing service), ReColorado does not require membership to the National Association of Realtors to post our listings for sale (we do pay a higher monthly fee if we are not a member). There are real estate brokerages that do require membership but it is not the MLS. As an independent brokerage Willie and I made the choice to leave NAR 2 years ago, as it was not advantageous to our business or to our clients. We are independent agents that use our own moral compass to conduct our business and follow the laws of Colorado for each and every transaction. As we know more you will know more. I would count on many updates from many sources as even the lending world will be affected by this settlement. If you would like to speak about this further we are always available.

If you would like to chat about Real Estate or Property Management please Click Here to reach us.

Real estate is more than transactions; it’s about building relationships and helping dreams come true. Your confidence in our services means the world to us, and we are committed to continuing to provide you with the highest level of expertise and service.
 

Thanks ReColorado for the information/stats