While a record-breaking hail storm hammered parts of Denver last month, neither hail, rain or even a May snow could dampen the Denver-area housing market.
The average sale price of a single-family home sold last month approached $500,000. Per the Denver Metro Association of Realtors, that’s a 2.84% increase from April, and nearly 10% jump from a year earlier. When condos are thrown into the mix, the overall average price for all homes sold last month was $449,736, a 9.83% year-over-year increase.
Indeed, Denver was the fourth fastest appreciating market in the country, according to the most recent report by Case-Shiller. Only Dallas, Seattle, and Portland out-performed Denver. Case-Shiller also reported an 8.4% year-over-year increase in home values in March. The 20 cities tracked by Case-Shiller showed an overall gain of 5.2%. And mortgage rates during the Memorial Day holiday fell to 3.94%, the lowest point so far this year.
Last month, almost as many homes were sold as were available in the active inventory of unsold homes, according to DMAR. Despite rising prices, more sales took place in May than in either April or May of last year. There were 5,320 homes sales last month, an 11.46% increase from April and almost a 2% increase from a year earlier. There were 5,895 active listings on the market last month.
While a market the size of Denver could easily handle three times that many homes for sale, it was still nearly a 10% increase from April and close to an 8% increase in supply from May 2016. The increase in sales left the market with a 1.18-month supply of homes. In other words, if no additional homes were added to the market with the sales pace remaining the same, all the homes would be sold in a little over five weeks. Overall, the months-of-inventory was 4% lower than it was this time last year.
Some of the biggest drops in months-of-inventory occurred for the highest priced homes.
For homes priced at $1 million and above, there is a 5.83-month supply of inventory, a 21.8% drop from a year ago. Homes priced from $750,000 to just under $1 million, showed an even bigger drop in inventory levels with a 2.89-month supply of unsold homes in that price range, down 22.9% from a year earlier.
Not only did home prices rise last month, but they also sold faster. On average, a single-family home took only 27 days to sell. That is 10% faster than in April and 12.9% faster than in May 2016. Last month, buyers snapped up $2.4 billion in single-family homes, townhomes, and condos, a 14.65% increase from April and 11.92% year-over-year increase.
It appears no matter what surprises the weather might have for us this summer, the Denver-area housing market will continue to blossom.