So, How’s the Market, May, 2018
How Hot is Denver Real Estate?
• May 2018 inventory of single family and condo rose 4.1% from a year ago. Total Active listing’s today is reporting 5,015 compared to 4,816 12 months ago.
• Due to the rising of prices and interest rates, the number of closed properties has decreased 1.1% from April 2017. This is two consecutive years the number of sales has dropped year over year in April.
• The average price of a home in Denver today is $481,904 compared to $432,268 one year ago. An 11.5% increase.
• The Days on the Market has remained the same over one year ago and today stands at 20 days on the market.
How Does 2018 Compare with 2017 through April?
- The total number of sold properties in 2017 was 15,313 through April. In 2018 that number is 14,781 or a 3.5% decrease in Sales in 2018. Does this signify a buyer behavior pattern is starting to slow down their purchasing frenzy? Possibly, but watching this trend through the summer will most certainly give the prognosticators more data to predict the future.
- Average Prices continue to rise at 10% per year. Some neighborhoods have out-performed that number by a significant amount, specifically in the lower or entry level price points. As of today, there are only 28 single family homes for sale in the entire Denver market place below $250,000. Buyers are getting priced out of the market, which will slow buyer behavior down.
- The number of properties placed under contract in April 2018 is 2,2% more than April 2017. This would suggest we are still in a sellers’ market this spring and summer.
As buyer behavior buying patterns slow down, we will see inventory rise through the balance of 2018 and prices to level off. There is a sense in the market we are changing the market dynamics, but by all means, it remains favorable for sellers to sell their properties today at top dollar and for buyers to be able to enter the market and still see normal appreciation levels for the next several years.