As published in DMAR Market Trends, November 2024

This is one of the best times of year for buyers to look at homes. Many sellers are eager to finalize their sales before the year ends and often offer more significant discounts than at other times of the year.

Staying active in the market from Thanksgiving through New Year’s Eve can present unique opportunities to find a deal—unlike those waiting in the shadows until spring.

While some sellers still price their homes too high and need to adjust their expectations to match current market conditions, days on market are longer but still reasonable. Buyers have the opportunity to take more time making decisions while sellers should focus on staging and pre-inspections to secure top dollar.

Seller concessions, such as buying down interest rates, have become increasingly common. In today’s market, most sellers should anticipate offering such assistance as interest rates continue to fluctuate.

The holidays at the end of the year often encourage both buyers and sellers to take a break and put their efforts on hold until after January. This could lead to increased competition among buyers and sellers in the new year.

Roughly 78% of voters living near Union Station passed Ballot Measure 6A, authorizing $570 million in debt for downtown revitalization.

Lawrence Yun, Chief Economist for the National Association of Realtors® (NAR), predicts that the worst of the housing inventory shortage is coming to an end as mortgage rates stabilize and job growth continues. The Denver market often sets national trends, and local inventory has been steadily climbing for months.

Denver ranks among the top tech markets in the nation, with tech firms driving 21.4% of office leasing activity in 2024 and securing 64.6% of venture capital funding. Office rents grew by 5.7%, while high-tech job growth and a highly educated population continue to drive momentum.

The Denver City Council passed a measure allowing accessory dwelling units (ADUs) in all residential zones. This increases the land area where ADUs can be bult from 36 to 70% of Denver’s total residential land.

Colorado Springs (#3) and Boulder (#10) were ranked among the best places to live in the United States by U.S. News and World Report. Fort Collins ranked 39^th, and Denver ranked 40^th.

Consumers continue to value their buyer agents as much as they did before the 2024 NAR settlement agreement. An analysis of over 55,000 post-settlement real estate transactions shows that buyer agent compensation remains relatively unchanged.

The share of homebuyers paying cash reached 33% in August, one of the highest percentages since the Great Recession. This trend spans all demographics, including young buyers, retirees and those making local and interstate moves.

After four years of significant fluctuations, U.S. investor home purchases fell 2.3% in the third quarter compared to last year, returning to pre-pandemic levels.

Home owners are holding over $35 trillion in equity, while mortgage debt has remained relatively flat at $13.2 trillion.

Twenty-nine homebuyer assistance programs were added in the third quarter, bringing the total to 2,444—an increase of 192 programs compared to last year.

MORTGAGE NEWS

The week before Thanksgiving, buyer demand, as measured by mortgage purchase applications, increased 12% week-over-week and rose 16% from October to November.