The Market Is Moving As Expected

Momentum is building and every key metric is on the rise. Prices are up. New listings are up. Contracts are up. Inventory is up. And most importantly, buyer activity is rising.

Prices

• The average sold price for all property types is up 6.4% compared to the same time last year, ending last week at $707,827.?
• The median sold price for all property types is up 4.1% compared to the same time last year, ending last week at $600,000.?
• While inventory is rising rapidly, demand continues to put upward pressure on prices.

New Listings

• Last week set another record, with 1,336 new homes hitting the market—19% more than this time last year and a massive 47% increase over 2023.
• Normally, a spike in inventory would raise concerns for sellers, as rising competition can put downward pressure on prices and extend time on the market. But in today’s market, pent-up buyer demand is absorbing the increased supply, keeping the balance in check.

Days on Market

• This year’s pattern has taken a puzzling turn: For the past five weeks, days on market have hovered between 49 and 51 days, defying the usual seasonal drop.
• Days on market dropped to an average of 46 days last week, by far the highest we’ve seen for this time of year in over a decade.?
• The explanation -- rising inventory and patient buyers.
• However, segments of the market are moving extremely fast, and prices continue to rise. If mortgage rates continue their descent, we could see days on market come down rapidly.??

Contracts

• A total of 977 properties went under contract last week -- 16% higher than the average of the last two years and just 6% below the peak activity of 2021 and 2022.
• There is significant pent-up demand from the last three years of suppressed market activity, suggesting that real estate may remain resilient in almost any interest rate, political, or economic environment.
• Offers above the asking price are trending upwards.

Showings

• Showings surged last week, reaching 27,325 -- 50% higher than the same time in the past two years and only 10% below the frenzy of 2021 and 2022.
• However, many sellers may not?feel?that intensity, given the significantly higher inventory.
• Unlike 2021 and early 2022, when sellers were averaging 15 showings per week, today’s seller is seeing just 3 showings per week.
• The demand is there, but it’s spread across a much larger pool of available homes.

Mortgage Interest Rates

• Mortgage rates have been on a steady downward trend since the middle of February, hitting their lowest levels in four months.
• And there’s one big reason: inflation.
• But inflation isn’t the only factor. Rates also dropped due to economic pressures, Fed policy signals, consumer spending hitting a 4-year low, and tariff-driven instability have created wild swings in the equity markets.
• As a result, institutional investors have sought the security of the 10-year Treasury note, pushing yields down—and with them, mortgage rates.
• Stubborn inflation continues to apply upward pressure, preventing rates from falling as quickly as they might otherwise.

Government Layoffs

• Impact the real estate market? ?Short answer: No.
• Across the country—and especially in Colorado—we still have a severe housing shortage. Even if layoffs increase significantly, the market is well-positioned to absorb additional inventory without disrupting its current path.