It was an interesting month for Denver real estate this April as the data was different from what we were anticipating. However, the data continues to show our real estate market is still strong despite only veering off slightly from historical averages. Traditionally at this point in our spring selling season, we see an increase in both active listings and new available inventory. This year, however, cooler temperatures and late season weekend snow flurries had many folks avoiding getting out to view homes.
We ended April with 4,758 new listings for single-family and attached homes, a 6.7% drop from the previous March and a 31% decline from a year earlier. However, looking at the month-over-month data, we gained 2.5% for both average and median home prices. 2023 will not be a double appreciation year, but there is still much to be optimistic about. Low single-digit growth in appreciation still promotes strong home ownership. It is worth a conversation with your realtor if you're debating whether to buy or sell, and remember - marry the house, date the rate. You can always refinance.
Who's Buying
Quality inventory is flying off the shelves as fast as its arriving and is leaving many buyers frustrated. The question then becomes - who's my competition? Well, nationwide, millennials have officially surpassed the 50% ownership rate. More impressively, 26% of Generation Z adults now own a home. This generation of home buyers is entering the market bullish and eager to find a home that works for them, their lifestyle, and their financial goals.
The Reality of Inventory
Historically we begin to see more listings make their way to market in May-September, with the highest levels of inventory available occurring during September. Typically, the Denver market puts most of the year's units under contract in May. Several factors are affecting this seasonal trend for buyers and sellers in Denver. We closed out April with only a slight increase in active listings, 4,620 homes total. Outside of the pandemic, this is the lowest available inventory the Denver market has experienced since 2008. Closed homes dropped by 30% from the previous year, for a total of 3,701. While active inventory rose by 2.3% month-over-month, that gain is far below the historical average growth of roughly 10% between March and April that we typically experience.
What's evident in our market is that what buyers and sellers are experiencing is not universal. There's a clear sense of tug-of-war between picky buyers and limited sellers. Buyers are more discerning than ever in what they want in a home. Sellers on the other hand fall into two buckets, those who will earn a big payday and others who will sit on the market for a stressful amount of time - without much activity. There are several ways to set yourself apart from the competition and for success. Connecting with a REALTOR who understands your needs, lifestyle, and goals can be the difference between a successful closing and endless days of stress.
Home Cents
When available inventory in Denver is low, and interest rates are high, taking the next step toward your real estate goals can be highly discouraging. When looking at month-over-month data however, the median and average closed sales price increased roughly by 2.5%. Turn-key homes with a robust marketing strategy are closing as quickly as they arrive on the market. This month, we saw homes priced under $1 million in the right conditions closing for over the asking price by roughly 2-3%. Homes located along the western corridor of I-25, near Lakewood, Golden, and Wheat Ridge, are closing approximately 3-5% above the asking price. Although homes in the $1 million plus market ended the month with a close-list price of 99.23%, there were several outlier sales in the metro area, with homes going anywhere from $100,000 - $300,000 over the asking price.
If you're looking for your dream home, we'll connect you with a neighborhood expert who will develop and execute a top-notch plan to achieve your home goals.
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