Metro Denver's Housing Update – November 2023
Residential Housing Market Trends for the 11-County Denver Metro Area.
November housing market analysis for the Denver Metro Area sees A stabilized landscape amidst continued economic uncertainty.
By the Numbers the data for November paints an optimistic picture, demonstrating encouraging signs of stabilization within the Denver Metro housing market despite the looming possibility of a minor recession.
Seven weeks ago, the mortgage rate peaked at 8.03 percent, instigating a palpable chill within the market. Currently, the market has experienced a favorable turn of events with rates decreasing by a significant one percent, settling at a more manageable 7.04 percent. This decline, contingent on the Federal Reserve's policy trajectory and diminishing inflation, may pave the way for further rate reductions.
In examining inventory levels, a notable increase of 6.89 percent from last November is observed. It is crucial to highlight the divergent growth rates within the attached and detached single-family segments. The attached single-family inventory expanded by an impressive 15.47 percent year-over-year, contrasted with a more conservative 3.74 percent increase in the detached single-family segment.
A seasonal decrease of 10.67 percent from October was noted, slightly less than the anticipated 13.28 percent. This seasonal fluctuation resembles a strategic maneuver within the market.
November witnessed a significant decline of 28.93 percent in new listings compared to October, aligning closely with the expected seasonal drop of 28.48 percent. Remarkably, the year-to-date analysis reveals an 18.17 percent reduction in new listings compared to the preceding year. This trend indicates a strategic hesitation among homeowners, anchored by the allure of their current low mortgage rates.
The winter months traditionally signify a seasonal lull in market activity, affording participants a moment of reflection and recalibration.
The average closed price for November stood at $659,152, demonstrating a modest 0.40 percent increase from the same period in 2022. Simultaneously, the median closed price reached $565,250, reflecting a marginal uptick of 0.10 percent year-over-year. This steadfast pricing resilience echoes a sense of market stability.
The average days in the Multiple Listing Service (MLS) for November amounted to 38 days, a slight increase from the previous November's 34 days. Notably, this figure represents more than double the duration recorded in 2021, signaling a measured deceleration in market velocity.
Pending home sales for November experienced a nominal decline of 9.51 percent from the previous month but sustained a commendable 4.35 percent growth compared to the same period last year. This month-over-month decrease aligns with expectations, while the robust year-over-year increase bodes well for a positive December closing figure.
In conclusion, the Denver Metro housing market for November displayed resilience and adaptation amidst economic uncertainties. While challenges persist, the market's ability to stabilize and exhibit strategic movements underscores its capacity to weather fluctuations. We anticipate further developments as we approach the end of the year.
Thank you for your attention. Should you seek additional insights or clarifications, please do not hesitate to contact me.
Source of Data: REColorado.com, Denver Metro Association of Realtors.