In September, Denver-area home sales slowed more than the typical seasonal slowdown. This may be a sign that if you want to close the sale of your home by the end of the year, you will need to make some adjustments.
There were 4,427 total home sales in September, an unusually large 21.6% drop from August and a 15.6% drop from September 2016, according to data from the Denver Metro Association of Realtors. By comparison, September 2016 showed a more typical, seasonal drop of 11% and 5.5% from the previous August and September 2015, respectively. Home sales showed big month-to-month drops across the board. The biggest price band drop was for single-family homes priced at $1 million or more, which experienced a 25.38% slowdown from August. “September activity in the single-family luxury market fell like the autumn temperatures resulting in a buildup of inventory,” according to Jill Schafer, Kentwood Real Estate broker and a member of the DMAR Market Trends Committee.
At the same time, luxury homes fared very well when compared to a year earlier. The sales of the most expensive homes soared 24.36% last month from September 2016. And homes priced from $750,000 to $999,999, showed the largest year-over-year, increase of any price band, jumping by 31.24%. On a month-to-month basis, single-family priced from $500,000 to just under $750,000, showed the second largest slowdown, with sales falling 24.34% from August. In fact, on a month-to-month comparison, the only price range that showed an increase was for single-family homes priced between $100,000 to $199,999. While homes in that price range jumped 18%, only 26 homes traded hands, as there are few homes available priced below $200,000.
If you are house-hunting, now is a great time to consider buying a condominium or town-home. There were 1,893 attached homes on the market in September, a 9.68% increase from August and a whopping 19.96% jump from September 2016. The average sold price of a condo last month was $313,096, almost $163,000 less than the $429,597 average price of a single-family home sold in September. The sale price of both condos and single-family homes were down slightly from August, but were up 8.5% for single-family homes and up 9.6% for condos. Despite the slowing sales, there was only a 1.8-month supply of single-family homes on the market last month and a 1.5-month supply of condos. A market balanced between buyers and sellers has 5-to-7 months of inventory, so Denver is still a strong seller’s market.
Regardless of the slowdown last month, the year still is slightly ahead of where it was in 2016. In the first three quarters of this year, there have been 43,558 total closings, for a record sales volume of $18.85 billion. In terms of year-to-date sales, the market is 3.22% ahead of where it was last year. In terms of dollar volume, the market is 11.82% ahead of where it was this time last year.