Colorado Real Estate News

2019 Promises Lots of Opportunity in the Denver Real Estate Market

Opportunities in the Denver Real Estate MarketHomebuyers 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.

Colorado Real Estate News

Denver Real Estate Market Reversing Trend

ThinkstockPhotos-99903581If you are in the market to buy a home, you are in for a treat. This fall has been the best market for homebuyers in the past few years. According to a recent report by REcolorado, there were 561 more homes on the Denver-area market in October than in October 2014. That is a 7 percent increase in active listings on a year-over-year-basis.

This marked the second consecutive month that more homes were available than in the corresponding month of 2014. In other words, Denver is reversing a two-year-old trend of having a record low supply of homes.

Despite the increase in supply overall, it’s still a seller’s market. According to the Denver Metro Association of Realtors, October ended with a 1.86-month supply of unsold single-family homes on the market. While that’s up from the 1.76 months of inventory in October 2014, it is still less than a two month supply of homes.

However, the months of inventory are not evenly distributed between price points. There is only a three-week supply of single-family homes priced from $200,000 to just under $300,000. But for homes priced at $2 million or more, it is an entirely different story. There is a whopping 28.75-month supply of unsold homes once you top the $2 million mark.

Regardless of the price range, buyers can still take advantage of mortgage rates that are near historic lows. And while the overall inventory is still extremely tight by historic standards, as a consumer it’s always nice to have choices.