If the Denver-area home sales market was a publicly traded company, it would be one of biggest in Colorado.
In the first three quarters of 2016, buyers snapped up a record $16.7 billion in homes, according to the Denver Metro Association of Realtors. The sales volume topped the market cap – the total value of the stock – of local companies like Chipotle Mexican Grill, Da Vita, and Arrow Electronics. The sales volume of all homes was 7.46% higher than in the first nine months of last year. Turn the clock back four years to 2012 and the total sales volume is up about 74%!
The big reason sales volume has shattered previous records is because home prices have been doing the same thing. The average price of all homes sold at the end of the third quarter was just under $400,000, which is 10.5% higher than a year ago. The median, or middle, price was almost $350,000, up 11.4% from the end of the third quarter of 2015. At the end of September, there were 7,599 active listings on the market, slightly above where it was a year earlier.
But for the first time in history, the number of active listings in September actually surpassed the number of houses on the market from the previous month.
There were 3.71% more homes on the market in September than in August, defying the usual seasonal month-to-month dip. This means more homeowners are willing to sell their homes this fall rather than waiting until the spring. Buyers also would be wise to take advantage of the added supply. Not only do they have more homes to choose from, but they can guarantee they will be able to lock in today’s low mortgage rates.