Denver area home inventory has been at historic lows since early 2012. The question all real estate professionals are asking is, when will it recover?
Low inventory means higher prices, with some areas seeing increases in value as high as 7.6% within a year period. This means buyers are struggling to find a home they can afford and sellers are afraid of selling for fear of having nowhere to go.
So how has this year compared to last? Let’s take a look at the numbers:
Number of New Listings: 1,626 in September 2016, down from 1,547 in September 2015.
Number of Sales: 1,199 in September 2016, down from 1,333 in September 2015.
Average List Price: $478,507 in September 2016, up from $439,507 in September 2015.
Average Sale Price: $423,069 in September 2016, up from $379,878 in September 2015. That’s an 11% increase!
Average Days on Market: 35 in September 2016, up from 32 in September 2015.
Data from REColorado.com for the time frame of September 1, 2015 to September 30, 2016.
So what does this mean?
There are fewer houses available now than there were a year ago, however, the market appears to be slowing down, with fewer sales and increased days on market since this time last year. This may not all be caused by decreasing demand, however. Many agents report slow appraisal times which delays loan approval and closing dates.
The market is still overwhelmed and prices continue to rise. The 2014 U.S. Census estimates 270,000 people moving to Colorado annually, so we don’t expect to see much change in the demand.
The market conditions remain ideal for sellers. Buyers continue to compete over listings and many are frustrated by the seemingly omni-present higher bidder.
If you are looking to sell your Denver-area home, now’s the time. Reach out today and let’s get started!