This month's stats echo the sentiments of last month - the Denver real estate market is steadily moving toward more balance among buyers and sellers.
As some pressures lift form the shoulders of buyers and as sellers experience less of a frenzy around their listings, the city is all abuzz about how the real estate market is turning on its head. But don't mind the hoopla Denver is still a seller's market and property values continue to rise. Here's how we know:
Home Values Continue their Healthy Appreciation
According to The Denver Metro Association of Realtors, the Denver metro area has seen more than a 7% climb in home equity (on average) since this time last year. Given that the historical average hovers just above 5%, we can safely say that Denver's real estate market is performing quite well.
Denver is Still Far From Satisfying Buyer Demand
If you sat through Econ 101, you know that supply and demand is the most foundational aspect of any economy. Whether it's houses or hamburgers, the ratio of items available for purchase in relation to the amount of people who'd like to buy that item drives pricing and market balance. We know that Denver has seen a listing shortage as of late, driving prices to record highs.
Though we've seen an increase in inventory (35% more since last year), Denver remains under-stocked. A balanced market - meaning that neither buyers nor sellers have an advantage - exists when there is 6 months of home inventory. Denver currently offers only 2 months of inventory. This means that available listings still aren't meeting The Mile High City's home buyer demand.
In other words, we're still solidly in a seller's market.
Denver's Economy is Going Strong
With a population growth rate of 1.4%, Denver's net migration is still on an upslope. To top it off, metro Denver is adding jobs right and left, maintaining an unemployment rate well below the national average. Sure, population growth has slowed, but the foundational economy continues to thrive and an alleviation of the droves of transplants vs. the limited properties for sale is a breath of fresh air. Barring political upheaval or a Denver mass exodus, our local economy should continue to thrive for the foreseeable future.
The Denver Real Estate Market is Going Strong
In short, the Denver real estate market isn't tanking. In fact, we're still far from a buyer's market (given that sellers hold more power than buyers). Keep your eye on the spring market - homes tend to sell more quickly as March breezes by and we expect the same for 2019.
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