If you've driven around neighborhoods in the Denver metro area recently, you may have noticed there's quite a few for sale signs up in yards. The area has seen a 48% increase in active listings since this time last year, making it the most homes for sale since 2011, according to Multiple Listing Service data.

"I think we have a bit of pent-up seller demand," explains Amanda Snitker who chairs the Market Trends Committee for the Denver Metro Association of Realtors.

She explains that many homeowners who locked into low interest rates before or during the pandemic have chosen to stay in their homes rather than list them. Though rates haven't dropped, many are done waiting.

"They've been waiting for a while," she said. "The pain points of whatever the reasons were they wanted to sell have become more painful."

According to the MLS, there are around 15,000 active listings in the area, up dramatically from a year ago. It means buyers have higher standards, and in many cases, more negotiating power. While sellers need to be more strategic.

"Your competition is just different than the conditions we were in last year. The buyers today have more to choose from, and so pricing to make sure that your property is the one that's going to sell."

Snitker adds that the swing isn't necessarily out of the norm.

"The Denver market tends to function in extremes. And it can swing very quickly, because we do have a pool of buyer demand waiting for conditions to be appealing. On a large scale, we're looking at a lot of inventory. But when you look at it at a very small local level, you still might have very few to choose from."

The situation is different based on style, condition, and price point. For example, the attached home market has struggled for years according to Snitker, and homes under $1 million are harder to sell right now.

Snitker believes the area will continue to see more and more inventory enter the market in the second half of the year. There could be a federal interest rate cut in September that would increase the buyer pool as well, but if not, the Denver metro area will likely continue to trend in the same direction with active listings.