The Denver metro real estate market continues to stay strong for sellers and challenging for buyers. The number of homes for sale (inventory) continues to decline and is at an all time low. Here are the highlights:
# HOMES FOR SALE (INVENTORY) DOWN -47% FROM 6 MONTHS AGO (5,515 Homes For Sale Currently)
# SOLD HOMES DOWN 41% FROM 6 MONTHS AGO
- WHAT’S TRENDING: This continues to be the biggest story for our Denver metro real estate market right now. Inventory continues to stay at record lows. Spring is typically the selling season and we often see the # of homes for sale increase after the Holidays. But this year the # of homes continues to decline. Buyers are still feeling pinched with limited options and multiple offers well over list price common. Seller rent-backs are becoming more common while other sellers are moving in with family until they find their next home.
- WHAT DOES THIS MEAN: Whenever inventory is below 4-5 months it favors sellers. The longer inventory stays low the more it weighs in their favor. Buyers need to act quickly when they find a home they like and make an aggressive offer. Coming in way under list price expecting a counter is not a prudent strategy and is resulting in getting outbid by other buyers. Sellers need to have a strong pricing & marketing strategy to get the MAXIMUM price & buyer interest immediately when coming on the market. Even more importantly, your listing agent needs to help you work with the appraiser to try and get an appraisal that supports what a buyer is willing to pay. Appraisers are still going on historical data and have a tough time accounting for the premiums buyers are willing to pay in the low-inventory market.
MEDIAN DAYS ON MARKET DROPS TO ONLY 6 DAYS!
Despite inventory levels rising (as shown previously on this report) the time it takes to sell a home in the Denver Metro area is still only 2 weeks (14 days!) This has been about the same since April and will be the most telling sign that the market is shifting out of the sellers favor. BUT for now it’s still very much a seller’s market.
- WHATS TRENDING: Median sold price is $309,000. It’s up about 14% from 6 months ago (Last September)
- WHAT DOES THIS MEAN: People keep asking me “is this a bubble. My response: until inventory gains over take the # of homes sold, no. And once this does happen…due to population growth projections and rising rental rates, the values will hold as demand stays steady for home purchases. We eventually will see a slow down in price increases but I highly doubt we will see a decline. Many industry experts feel similarly. The challenge this presents is mostly for appraisals. They are based on “HISTORIC” data while buyers are making offers based on present demand and inventory levels. Some homes are not appraising for what buyers are willing to pay.