Holiday season also happens to be slower real estate season. With would-be home buyers and sellers focusing on family and festivities, their attention turns away from house and toward home. This year's no different but there's something else at play too. The Denver real estate market appears to be continuing its incremental approach toward a balanced market, based on November's numbers.
Increased Inventory
One of the most impactful real estate market factors is inventory. Throughout Denver's real estate boom, the city and its surrounding areas were short on inventory. This created a frenzy around the homes on the market, driving up prices - especially for moderately priced homes. Though Denver's still working its way toward offering enough inventory for buyers, the number of homes on the market has made an impressive gain of 47% since this time last year. This opens the door of opportunity for buyers who have been frustrated for years while sellers will see a reduction in multiple offer situations.
Decreased Home Sales
Another indicator of the balancing market is the decrease in home sales of 24%, year over year. Many experts attribute this cooling to the rising mortgage rates and the result is further ease for buyers. If you're a seller, be sure to work with your Realtor to price your home well homes strategically priced are still selling quickly!
Sales Price Increase
Do the increase in inventory and decrease in home sales mean home prices will plummet? At this point, the answer is an unequivocal œno. Though the hot market is showing signs of cooling, the average single family home price has increased by 5% since this time last year. This increase outpaces the historical home appreciation average.
Months of Inventory
And while we're on the topic of the persisting strength of Denver's real estate market, let's take a look at months of inventory. A seller's market exists when there are 6 months of inventory or more and the market is balanced when 5-6 months of inventory are offered. Denver currently has just over 2 months of inventory available - it's still a sellers' market.
Days on Market
Another indicator of real estate market strength is days on market. Homes (obviously) sell faster in a hot market. Compared to November of last year, homes sold just as quickly in 2018.
Our Tips for Denver Home Buyers and Sellers
If you're a buyer, get on out there! There are more home to choose from than in recent recollection. If you're a seller, work closely with a trusted Realtor to prepare your home for the market, and price your home based on very recent comps. It's still a sellers' market, so taking a clever approach to listing your home is sure to pay off.
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