Wow, it’s already May and spring time is in full swing here in the Denver area! With that, let’s take a look at how the real estate market in the Denver metro is trending.
The average price of a single family home hit $530,897 in March and then reached an all-time high of $553,371 last month in April. That was a 1.26% then 1.51% increase in price year over year, respectively. The median price change stayed relatively flat with the current median price at $460,000.
The available home inventory continues to increase across the Denver metro area. We’ve seen huge percentage gains across the board. Most recently in April, we saw a year over year increase of 35% from this same time last year. At month end, there were just over 7000 homes on the market. To keep that in perspective, historically the average number of homes on the market in April is about 15,000! Because of this large increase in homes, we’ve also seen the number of days a home stays on the market increase to an average of 28 days, which is 33% longer than this same time last year. Because the demand has remained relatively consistent while the inventory has increased, we’ve seen a slight uptick in the MOI (months of inventory).
Did you know that even though we’re in a seller’s market, the number of transactions that include a seller concession continues to increase? In fact, as of the end of the first quarter of 2019, that percentage increased to 58%! That means that over half of the real estate transactions in the Denver metro area included some sort monetary concession from the seller to the buyer. That typical amount was about 1% of the purchase price.
Number of Sales
What’s so strange to see is the number of home sales decline across the metro area. In March, the number of homes that sold across the Denver metro area was down just under 12% from the same time last year. In April, the number of that sold was then down another 7% from the same time last year. Despite the growing number of homes for sale and the obvious population growth, home sales haven’t increased. This is good news from a “bubble” perspective (not an overheated market). Also, this means there is plenty of pent up demand on the sidelines.
I think we find ourselves in a good situation for buyers and sellers. Yes, my buyer clients have run into multiple offer situations. But, I’ve had homes for sale that had multiple offers and others that haven’t. The bottom line is that there hasn’t been a better time to be a seller and a buyer in the Denver metro area than this year.
If you’d like to discuss your specific scenario and real estate goals in the Denver metro area, reach out. I’d love to connect and dive deeper so that you have the best understanding of the market possible and can make the best decisions going forward. Have a great weekend!