March brought a mix of encouraging steps forward and a few reminders that the market is far from settled. The geopolitical backdrop continues to influence everything from consumer confidence to mortgage rates, and those effects are only starting to ripple through the numbers. Even so, Denver’s market showed pockets of real strength.

One of the more interesting shifts is in how buyers are financing their purchases. Conventional loans made up 64.3 percent of March closings, followed by 18.1 percent paying cash and 11.7 percent using FHA. These ratios have been gradually reshaping over the years and March continued that trend. It tells us the buyer pool is still diverse, and despite volatility, people are finding ways to move forward.

Sellers are also adjusting. In March, 63.14 percent of closed transactions included a seller concession. That is down slightly from February but still up 3.82 percent from last year. With global tensions running hot and consumer optimism a little shaky, I expect concessions to keep climbing as sellers work harder to attract the right offer.

The pace of the market told a split story. Detached homes saw real improvement with median Days in MLS dropping 53.8 percent to only 13 days. That is a meaningful shift and it shows where buyers are gravitating. Attached homes did not get the same lift. Days in MLS dropped, but only by 33.3 percent, landing at 30 days. The attached segment continues to feel softer demand and more price sensitivity.

New listings were up, rising 19.9 percent from February. On the surface that looks fantastic, but seasonally we should be closer to 31 percent, so I am not throwing confetti. A likely factor is hesitation. Between geopolitical risk and shrinking borrowing power, many homeowners are deciding to wait a little longer before entering the market.

Inventory moved up as well, driven mostly by weaker performance in detached single family homes. March ended with 9,846 active listings, up 9.55 percent from February and just slightly above March of last year. Historically, March inventory should see detached homes jump around 11.13 percent month over month. This year we saw only 9.48 percent. Detached homeowners are usually highly motivated early in the season, so that shortfall is worth watching. For context, the all time high for March inventory was 27,309 in 2006 and the all time low was 1,921 in 2021. We remain somewhere in the middle, but leaning toward the lower side of history.

Closings performed well. February was a strong month for homes going under contract, so it was not a surprise to see March finish with 3,887 closed sales. That was a solid jump from February’s 2,834. On a seasonally adjusted basis it represents a 2.6 percent increase and it puts us 4.2 percent ahead of last year. The celebration will likely be short lived. With the Iranian conflict disrupting financial markets, April’s closing numbers are expected to soften.