2020 Denver Real Estate Market Kicks Off as a Home Seller’s Market
Housing conditions in metro Denver last year, from low inventory to record-breaking prices, position Denver as a seller’s market going into 2020.
2019 ended with 5,037 active listings, down 9.7% from 2018; notably representing 41% of Denver area’s 30-year annual average of 12,262 active listings. For perspective, active listings reached their highest point in July 2006 with 31,989 listings. During that period of record highs, months of inventory stood at 6.6 months which implied a healthy homebuyer’s market. The record-low month was in December 2017 with 3,854 listings.
Considering the average rate of home sales, it would take only 1.13 months to sell all single-family homes and 1.37 months to sell all condos in the Denver area. Anything under four months means sellers have the power in negotiations, while more than five months means buyers have control.
Record-breaking Home Prices
2019 established a new historical high and marked the eighth consecutive year of price gains. In 2019 the average home price was $486,695 and the median home price was $420,000, up 2.85% and 2.5% respectively compared to 2018. Furthermore, over the last 30 years the average home price in metro Denver has increased a staggering 417%!
Luxury Market Overview
The Luxury Market, homes priced $1 million and up, had 4.06 months of inventory at the end of December for single-family homes and 2.26 for condos – that’s more than any other housing price segment; yet it still indicates the market overall favors sellers.
The Luxury Market was the only housing segment to see a year-over-year decrease in average and median days on market – from 68 in 2018 to 60 in 2019, down nearly 12%, and has notably been decreasing since 2015 when it stood at 87 days.
In 2019, 2,421 homes sold and closed for $1 million or greater, up nearly 12% from 2018. The closed dollar volume in the luxury segment was $3.74 billion, up 13.5% compared to 2018.