February Denver Real Estate Market Update

Mar 1

February showed a bustling start to the real estate season, with several promising trends emerging. Let's explore the highlights and what they mean for buyers, sellers, and investors.

A Promising Start

As we ushered in the end of February, the 11 counties of the Denver Metro area exhibited clear signs of an early and robust buying and selling season. This surge in activity is buoyed by household optimism regarding potential decreases in mortgage rates, signaling a lively market ahead.

REColorado New Listings Graphic. — *Data and Image:* *REColorado*

Inventory and Listings Surge

A standout feature of this month's market was the significant increase in inventory levels, a promising trend for prospective buyers. Inventory at the end of February was up by a striking 25% compared to last year and an even more remarkable 176% higher than two years ago. This increase can be attributed to more sellers entering the market, with REcolorado data revealing the second consecutive month of double-digit growth in new listings, totaling 4,267 homes.

*Recent Iron Works Realty Sales in Virginia Village, Denver, Colorado*

Sales and Prices Climb

The market didn't just see an increase in listings but also in the completion of sales. Both year-over-year and month-to-month figures for home closings saw upward movement, underscoring strong demand. This demand has nudged closing prices upward, with the median closed price in February reaching $575,000, marking a 3% rise from the same period last year.

Active Home Shoppers

February was a busy month for home shoppers in the Denver Metro area. 3,454 home listings went under contract, showing a slight increase of less than 1% from last February but an 11% rise from the previous month. These homes had a shorter market presence, staying available for 25 days on average, which is 2 days less than last February and 12 days less than the previous month, reflecting a faster-paced market.

*Browse Denver Real Estate listings online at* *Nestfully.com* *REColorado’s New Home Search Portal*

Rentals Show Growth

The rental segment also witnessed positive changes. In February, 305 properties were leased through REcolorado MLS, marking a 16% increase from the same month in 2023. Despite a slight decrease in median leased prices compared to last year, single-family homes attracted the highest leases, with a median price of $3,000 per month. The addition of 326 new rental listings and the closing month count of 553 active rental properties demonstrate a healthy and active rental market.

Looking Ahead

The Denver Metro housing market's February performance sets a vibrant tone for the upcoming spring season. With more listings entering the market and sustained buyer activity, we're witnessing a dynamic environment that offers opportunities for both buyers and sellers. For those considering entering the market, the current trends suggest a promising time to take action.

At Iron Works Realty, we're committed to providing you with the insights and expertise to navigate this bustling market. Whether you're looking to buy, sell, or invest, our team is here to guide you every step of the way. Let's make your real estate goals a reality. Contact us today.

Stay tuned for more monthly updates and market insights from Iron Works Realty. Here's to a prosperous month in the Denver Metro real estate market!

Jeff Piquette

Jeff is the real estate expert behind Iron Works Realty. As an agent, he works with custom home builders to sell new builds, advises asset managers at US Bank to sell client properties, and works with residents throughout metro Denver to achieve their real estate goals. As a licensed contractor, he has built, renovated, and managed properties for more than 20 years. Today, he is building a family home in Cherry Hills and has a deep understanding of the surrounding neighborhoods and community.