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Days are getting longer, and the grass is finally greening up across the Denver metro area as we head into May. Historically, this is the time of year we see home values across Denver shoot up, along with spring flowers. So, are Denver area home values on the rise like the temperatures are? A quick answer is Denver’s spring temperatures are following historical trends way more than Denver’s housing values. Let’s dive into it. 

It's not that Denver’s market remains cold as if it was still stuck in the winter season; it’s more that it’s not heating up as we’d normally see this time of year. The number of new listings is staying mostly consistent week after week, as well as the number of homes going under contract. This means the number of new listings hitting the market isn’t increasing as we’d normally see this time of year, and the number of buyers coming into the market is also lower than we’d typically expect to see this time of year. Both of these scenarios are keeping values more or less flat during our usually hot spring market.  

We mentioned in our April Market Update that we are seeing a high number of showings, and open houses are usually very busy. These high numbers of home browsers do not always result in offers for homes. This still remains true as we head into May. I translate this into the fact that there is still high demand for housing, but buyers are still waiting for a change in the market or looking for that perfect home before taking action. The change, as mentioned in our previous Market Update articles, is lower interest rates. The most recent Fed Meetings are still indicating that inflation remains higher than desired, which, in turn, is stopping the Fed from making any rate cuts. Translations from the most recent meetings do not indicate there is much of a chance of a rate cut through June, meaning the earliest we might see a rate cut is July. However, many economists are even suggesting that a rate cut in July may not happen. 

With buyers being told so heavily that interest rates would come down in 2024, many started the year with the goal of buying a home. However, now that more than a 1/3 of the year is officially behind us and interest rates remain as high as ever, many seem to have given up on this goal, at least right now. The fact that showings are remaining high and open houses are busier than ever tells us they are not yet ready to completely give up on this goal. If interest rates were to come down later in the year, this could still trigger a competitive market, forcing home values across the Denver metro area to see strong appreciation. 

For sellers, it is important to remember that buyers are being pickier than ever and truly looking for their dream home. The days of a buyer settling or paying more for a home just because it’s available are behind us. To sell a house today, you have to ensure your value is seen in the eyes of a buyer and that you price your home correctly from the beginning. Coming on the market too high might reduce your final sales price or, worse, reduce your chances of selling at all. 

As the Denver real estate market continues to play out in 2024, TK Homes will continue to monitor market conditions closely. However, even in a historically different type of Denver spring market, one thing remains: TK Homes will continue to provide the highest level of service to home sellers and buyers to ensure they are able to purchase the perfect home for their needs or sell their home for the highest market value possible. If you’re ready to make a change with your Denver home, contact a TK Homes agent today, and let's start your real estate journey together. If you’re not ready to make a move, check back on the first Thursday of each month to stay up to date on Denver’s current real estate market conditions. 

~ Written by CEO/REALTOR® Trevor Kohlhepp

**Looking for our part two on pricing strategies from last week’s real estate blog?
Check back next Thursday for our recommended pricing strategy to net you the most money at closing when selling your Denver area home!