Monica’s Monthly Minute- Denver Real Estate Market Update

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Nov 2019 Video
How much is the market cooling off?
Click HERE to find out.

Real Estate Update
This month to give you an update on the state of the market I will describe the most recent Monthly Market Snapshot. Sourced from the Denver Metro Association of Realtors, the following chart shows October of this year compared to October of 2018. (This is more effective than showing October compared to September since there is often seasonality that affects those stats.)
Note that these stats include single-family homes plus condos.
Active Inventory: Down 3.2%.  This is the number of active properties on the MLS. The number of homes on the market is down slightly from this time last year. When looking at the number of homes under contract and how that has increased by 10.1% one could draw the conclusion that there are fewer homes active on the market because they are already Under Contract. Inventory is moving.
Why are so few homeowners putting their homes up for sale, despite the record high prices? Economics 101 suggests that as the prices rise, sellers would chase the dollars and sell their homes to capture the record high prices. But just the opposite has happened in the past several years. As prices have risen, inventory has done the exact opposite and continued to drop or stayed very low.
Our best guess is that, while potential sellers understand they can make a big profit on the sale of their home, they are worried they won’t be able to find their replacement house because of the tight inventory. Or, sellers realize they could sell for top dollar but would have to pay the same or more for a replacement home. Regardless of their reasoning, many sellers have decided to stay put and not take any action until a later time which stalls the levels of inventory.
Sold Homes: Up 9.1%. This is the number of homes that were actually sold in DMAR (the Denver Metro Association of Realtors) in the past year (4,997). Once again, although inventory is down, homes are selling.
Sold Price – Average: Up 3.2% to $484,607. This is the average sold price of all properties sold in the past 12 months in Metro Denver. Basically, it’s the amount of appreciation in the market. Although the appreciation is less than in previous years, it is at a more sustainable percentage.
Sold Price – Median Up 5.5 to $422,000. Median and average are closely related. Median means the centered number, in short, a bunch of low-end properties pull the median sold price down below average. But notice, the median climbed more than the average as the number of low-end properties sold decreases. There are fewer cheap homes available to sell increasing the median sales price.
Days on Market Up 10 percent with an average of 33 days on market. 90 days is considered average so houses are still flying off the shelves. Sellers are still selling almost 3 times faster than usual, so it is still a very strong market.
The stats above were for Single Family Homes and Condo combined. Below are a few info-graphics with the statistics divided between those for Single Family Homes and Condominiums.
Condo sold prices are up faster than single-family homes, up 6.95 percent. More condo product is coming on the market but it still selling very fast. The inventory of condos on
the market is up (15.4 percent) but each condo is still averaging just 34 days on market, meaning condos are selling fast.
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