With a significant increase in month-end active and new listings hitting the market, a slight seasonal shift will positively impact buyers who have started to feel fatigued in the residential market. At the same time, current homeowners continue their unprecedented growth in equity.

With a historically high average sales price of $705,812 and increased interest rates, many buyers who saw their potential monthly payments drastically increase received a sign of reprieve. Month-end active inventory went up 81.16 percent from February to March. The additional 995 new listings on the market at the end of the month also slightly aided the balance of supply and demand. While the percentage increase is substantially higher, having such low initial numbers yield a higher percent change. Along with the 43.57 percent increase in new listings, this will help balance the accelerated price appreciation the market has recently seen.

“Earlier in the year, buyers offered six figures above the asking price while competing with dozens of offers,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “With the recently increased inventory, competing with just a few offers is more common. Although competition has loosened, the residential real estate market has always been slow to react to change. As a result, even with only a few competitive offers, it’s become standard for buyers to come in aggressively on offers, making the other offers start at an elevated price and terms. With record-high sales prices, interest rates increasing north of 4.5 percent, and an average close-price-to-list-price ratio of 106.46 percent, the monthly mortgage of a traditional buyer has never been higher.”

The Denver market currently sits at 19.88 percent appreciation compared to last year. While waiting may create more options, it does not guarantee more value. Last month alone, the average sales price increased 9.02 percent to $58,418. The market continues to move forward rapidly, just not as fast as the past couple of months, and the decreased speed will be felt in the coming months, creating the allure of more balance.