By Yates Craig - September 30, 2024
August brought a noticeable increase in buyer activity, with 3,877 home contracts signed—representing a 10% jump from last year and a 6% rise compared to July 2024. This renewed interest is largely fueled by a drop in interest rates alongside an expanding housing inventory. While mortgage rates tend to follow the movements of the 10-year bond more closely than the Federal Reserve’s funds rate, the recent Fed rate cut could signal the beginning of lower mortgage rates in the future. As the market adjusts, buyers who have been waiting on the sidelines may finally step in to seize more favorable financing opportunities.
The inventory in the Denver metro area reached a record high in August, with 10,497 active home listings—marking the highest level in over a decade and the second consecutive month above 10,000 listings. This is largely due to an influx of new listings outpacing closed sales.
Meanwhile, the time it takes to sell a home has also lengthened. Homes spent a median of 22 days on the market in August, which is 10 days longer than the same period last year and 5 days longer than in July. This 58% increase in time on the market reflects a more balanced market, where buyers have more time to explore their options and make decisions.
In terms of pricing, the market remains relatively stable. The median closed price in August stood at $590,000—up 1% from last year but down 2% from the previous month. This indicates that while the market is steady, price growth is moderate, offering buyers a bit more flexibility.
For anyone interested in Broomfield or Thornton homes for sale, this is an opportune moment, with more options to choose from and the potential for falling mortgage rates as bond yields and the broader financial landscape shift. Buyers are gaining more time and negotiating power, making this a favorable period to explore the market.