Homebuyers and sellers are seeing a lot of opportunity in the metro-Denver real estate market as of late.
Since 2012, homeowners have received incredible appreciation. For those considering selling their home to move-up or to tap into their equity, now is an ideal time to do so. In addition to being in the midst of a seasonal slowdown, over the last few months, the market has been shifting toward balance creating conditions that benefit both buyers and sellers. So, what exactly are these conditions?
More Home Choices for Buyers and Continued Strong Home Prices for Sellers
In November, year to date, housing inventory has increased 46.76 percent compared to last year in the residential market (single-family and condos), but was down 11.82 percent from last month. Those figures reflect that fewer homes sold in the Denver area in November, down 17.27 percent from October, and that dropped the number of sales year to date to less than any in the past three years. For perspective, though, the market has been in the fast lane for several years and is simply shifting to more neutral conditions.
The low months of housing inventory will keep homes prices strong. While the average sold price of $462,344 was down 6.3 percent from the peak price mid-year, it is up 6.47 percent year over year.
Seller’s Market for Homes Priced Under $1 Million
Single-family homes priced under $1 million had three months or less of inventory at the end of November, showing sellers still had control in the bulk of the market. Anything under five months is considered a seller’s market and over six months is a buyer’s market.
Buyer’s Market for Home Priced Over $1 Million
The luxury single-family home segment is sitting at 7.22 months of inventory, and the luxury condo market is sitting at 6.67 months. This is an important indicator as this shows that the ‘luxury market’ (homes priced at $1 million and greater) is officially a buyer’s market.
Overall, 2019 promises to be another strong year for both homebuyers and sellers in the Denver-area. So, rest up this holiday season and get ready for a fresh start come January.