As we transition into the holiday season with colder weather, shorter days, and more opportunities to connect with loved ones, the Denver real estate market will also make atransition into a seasonal slow down with buyers and sellers turning their focus from real estate transactions to making new holiday memories. If the November stats are any indication however, 2019 will still end strong.
This is interesting
Some of the November stats appear to contradict themselves. Days on market is up slightly and close-to-list price decreased slightly while the average sale price still increased by 7% year-over-year for all residential homes, further indicating that the Denver real estate market remains strong while establishing a new normal for the pace of the market.
Inventory
The most notable stat from last month is the loss of inventory, with a decrease of 6% from last year and down 23% from the previous month. The Denver real estate market is currently sitting at roughly seven weeks of inventory overall while the $300,000-$400,000 sector remains in an extreme seller's market with just three weeks of inventory. Keep in mind that a œbalanced market where neither the buyer nor the seller wields an advantage would offer six months of inventory.
Buyer Opportunities
Good news for Denver home buyers - interest rates will continue to sit at favorable lows through the end of the year and beyond. Freddie Mac announced in its latest forecast, œWe expect rates to remain low, falling to a yearly average of 3.8% in 2020 and 2021. Another perk of house hunting this time of year is the drop in competition. Plus, both buyers and sellers tend to be more serious about their home goals this time of year, making transactions more likely to end in a successful closing.
With low supply and steady demand, the Denver real estate market is set for a strong finish as we close out 2019.
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