Feb. 13, 2019
The Denver real estate market saw a large increase in inventory this past month compared to December. The sales were down 6.6% over last year's sales. The total inventory has decreased slightly, but we are seeing some going under contract fairly quickly. The frequent snowstorms are hampering a good buying season so far this year. The days on market have slowly been creeping up too from 40 days in December to 42 days in January. Keep in mind until these days reach 180 days - it is still a Seller's market. (In April DOM was only 20 days.)
With the interest rate creeping up and troubles with the government on and off shut-down, think the public is waiting to see what will happen in our market. The following data is courtesy of Joan Cox - House to Home, Inc.
Denver saw an increase in active listings (a huge increase in NEW listings) and this month we have 15% more listings than we did this time in 2018. The under contract listings saw an increase (3%) over the month of January 2018 and sold properties saw a decrease from last year. With 42 days on market, this still indicates we are experiencing a Seller's market, but Seller's should remember to list a home properly, as those over priced homes will sit on the market. (this includes land, attached properties, single family homes and up to the mega million dollar homes)
See what homes are currently available - Active Homes for sale in Denver
New Listings - 4,822 - down from 2,300 last month (in 2018 it was 4,194)
Under Contracts - 4,615 - down from 3,577 last month (in 2018 it was 4,481)
Sold Listings - 2,855 - down from 3,655 last month (in 2018 it was 3,056)
Days on Market - 42 days, up from 40 days last month (in 2018 it was 34 days)
Average Sold Price - $459,352 - up from $463,864 last month (in 2018 it was $446,131)
Percent of Sold Price to List Price - 98.5%, down from 98.7% last month
Buyers - inventory increased this month, giving Buyers more inventory now to view before making a final decision. There are times you even can think about a purchase overnight, and not "lose the bid". This time of year usually starts showing a bit of an increase, but the frequent snowstorms could be hampering the brisk activity. As been the case over the last several years - the price range between $300,000 and $500,000 has been the “sweet spot” and these homes are the ones garnering the most showings and offers at list price.
Sellers - Pricing your home is very important, and not start too high, or you will be sitting on the listing for a while. If you don't have showings, you won't see an offer! If you are thinking of selling, but worried you won’t find a replacement home, I can enter into MLS the fact you require a contingency of a replacement home.
Pricing a home is very important in this current market, and here is a chart showing how our median prices have shifted over the last few years.
Here is a chart showing when the Sellers are getting closest to their list price. Depending on what time of year you list, pricing is strategic.
Denver’s unemployment rate has been slowly increasing and currently at 3.3% for December. Still very low comparing to the national average of 3.9% in December. Colorado’s population is 5.557 million, with the Denver metro area seeing 3.075 million and Denver proper is 683,096. Denver has outpaced most large cities across the Country and expect to see by 2020 a population of over 3.3 million. We are seeing many corporations relocating their headquarters or putting in a hub into the Denver metro area, creating job growth. Lockhead Martin anounced they are hiring many more employees. Our state government is working hard on affordable housing issues for both the elderly and first time home buyers, with so many relocating into the Denver metro area. If our traffic issues would decrease, we could retain more of our residents. It can be quite frustrating.
Homeowners - if you have thought about selling and like like a home evaluation, please let me know, I will contact you right away. Relocating to Denver, and need some advice - see my Relocating to Denver information.