Spring Surge vs. Rate Pressure: Who’s Winning?

Mortgage rates climbed again last month, landing near 6.8%, and have hovered just below 7% since early April. Affordability remains a major challenge, putting extra pressure on buyers (and remember, most buyers are also sellers!). Even so, the median home price in the Denver metro rose to $675,000, matching April 2024. If May continues this trend (and it likely will), we could see prices exceed the 2022 high-water mark of $690,000.

The number of new listings rose 21% compared to last April, and active listings rose 56% year-over-year — meaning buyers have more options. Pending sales dipped in April, which is unusual. They typically peak in May before slowing for the year. April’s market volatility and stubbornly high mortgage rates may be to blame. Nonetheless, pending sales were 8% higher than in April 2024.

 
Homes are moving quickly: the median time on market dropped for the third month in a row to just 11 days. We now have 2.9 months of inventory for sale, healthier levels than we’ve seen for years. As of the end of April, there were 28% more homes on the market than in April 2019.

All in all, the spring market has shown impressive resilience despite the headwinds — from global trade tensions to elevated mortgage rates. While many hoped affordability would improve this year, it’s actually worsened over the past six months.

If you’re thinking of selling, remember: pricing is a huge part of your marketing strategy. Thoughtful pricing can set you up for success or hold you back.

As for us, we’ve been busy! Last week we listed a well-maintained Heritage Village tri-level on a fantastic lot. We just closed on a beautifully remodeled tri-level and went under contract on another nearby. We also listed a mid-century ranch with a backyard orchard near Southglenn and Trader Joe’s, and closed on an updated home in the Tiffany neighborhood after two quick offers and a sale slightly over asking. And after searching for 6 months, our first-time homebuyer landed this loft penthouse across from Union Station!

As always, if you’re curious about your home’s value, market timing, or want to talk through your options, we’re here to help.

Drop us a line: [email protected]

Best,
Jen & Chad