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Denver Real Estate Midyear Update: More Conditions Favoring Buyers Creating Balance
With metro-Denver housing inventory at its highest level since October 2013 and interest rates still low, now is a good time for home-buyers. On the flip side, with home prices peaking now is also a good time for home sellers; making for a more balanced market.
Housing inventory is up 28 percent year to date from 2018. The first half of this year ended with the most active listings, at 9,520 at the end of June, since October of 2013 which was at 9,734. For perspective, the record-high June for active listings was in 2006 with 31,900, and the record-low was in 2015 with 6,197.
Year to date in the Luxury Market (homes priced $1 million+), single-family home sales were down 2.72 percent year over year, but up 34.05 percent compared to 2017. Luxury condos also saw striking results with sales up year to date at 38.78 percent year over year and 4.26 percent since 2017.
The average sold price dipped 0.54 percent from May’s $502,518 to $499,807 at the end of June, but it crept up 1.64 percent year to date. More choices for home-buyers means sellers have had to make price adjustments to be competitive. Sellers with homes priced between $1,500,000 and $1,750,000 have been taking the biggest cut with a 91.20 percent sale-to-original-price ratio for single-family homes and 94.9 percent for condos.
Days on Market
Homes have been staying on the market longer before going under contract this year. The median days on market was up 66.67 percent from six days at this point last year to 10 so far in 2019. The average days on market is up 25 percent year to date compared to last year, from 24 to 30 days. Meanwhile, days on market for all price ranges indicates a seller’s market except over $1 million+ where it’s an equal market between buyers and sellers with 5.16 percent months of inventory for single-family homes.