As the Denver real estate market continues to change, the question on everyone’s mind is whether or not we are in a buyer’s market.
Traditionally, a market with less than three months of inventory is considered a seller’s market. In direct relation to that, a market with more than six months of inventory is considered a buyer’s market, which means that three to six months of inventory is defined as a balanced market. These benchmarks help define the current Denver Metro market, which is changing.
The $1 million and over segment for attached homes is at 2.83 months of inventory.
Using months of inventory as a metric indicates that Denver Metro is moving toward a balanced market and Luxury Market sellers are focused on getting their homes on the market, and it shows.
New luxury listings were up 18.86 percent from August, with a total of 649 homes priced over $1 million hitting the market in September.
The attached Luxury Market saw a massive increase in new listings, up a notable 66.67 percent from the prior month. With 5,962 new listings hitting so far this year, the Luxury Market is enjoying the highest amount of inventory in years.
Luxury buyers also have more time to decide which luxury home to buy.
Both detached and attached markets saw a significant increase in the average days in the MLS from August, up 31.82 percent or 29 days for detached, and 40 percent or 35 days for attached. This slowing market is echoed in the drop in pending sales in September, which decreased by 16.35 percent for detached homes and 8.33 percent for attached.
The spring frenzied bidding wars also seem to have subsided.
The close-price-to-list-price ratio dropped below 100 percent again this month, to 98.21 percent for detached and 99.30 for attached. Although the detached Luxury Market enjoyed an annual appreciation from a price per square foot perspective of 9.41 percent and a flat month-over-month appreciation, the attached market suffered a decline in annual appreciation of 0.18 percent and an even bigger decline month-over-month, by 5.26 percent.