The latest data shows local housing demand dramatically surpassing the demand seen in autumns of the past.
Prices, inventory levels and the number of homes sold have softened, but by all year-over year comparisons, the Denver market is significantly healthier than it was at this time last year. Sixteen percent fewer homes closed in September than in August, but 20 percent more homes closed over this time last year.
Average sold prices decreased 2 percent from last month, but are 8 percent higher than at this time last year. “Prices have been rising so quickly over these past couple of months, even a slight change looks like a large jump,” said Kirby Slunaker, CEO and President of Metrolist. “I expect the average sold price to flatten out over the winter months rather than plummet.”
The year-to-date average sold price of new and existing homes has risen by 10 percent over last year to an average of nearly $340,000. The average sold price of condos in the metro area is just under $200,000, an 11 percent increase year-over-year.
The ‘days on market’ measurement has stabilized, with no change from August, remaining at an average of 39 days for September. That’s down over 39 percent from September of 2012 and demonstrates how quickly the homes in the Denver market are moving despite the untraditional selling season.
“While the available inventory of homes and condos continues to be stable versus prior months, down about 2 percent, we still have less than a 7 weeks’ supply at this time,” said Slunaker.
The number of available listings, or “active” homes remains at a balanced level compared to the number of homes sold. This month’s inventory decreased 2 percent from last month, and remains 1 percent lower then at this time last year.
By all accounts, housing demand is unseasonably strong. “Prices are stabilizing, competition for new listings remains, and inventory increases seem to be steadying the local market overall,” said Slunaker. “All of our data points to a healthy market, which leads us to believe we are experiencing a true housing market recovery.”
Slunaker continued, “mortgage rates are still at historic lows, and we don’t see housing demand diminishing due to rates under 5 percent.”
No matter when homebuyers are entering the market, it remains critical that they come to the table well informed. REcolorado.com has the most up to date and accurate information when it comes to all things Denver real estate and serves as Denver one-stop-shop for neighborhood, lifestyle and pricing research.