Denver boasted record temperatures in November, even reaching an astonishing 81 degrees one day. Alas, the housing market sales did not see the same trend. The market cooled more than the typical seasonal slowdown. Why? Because there were a record low number of homes available to purchase for a November last month.
There were 5,131 single-family homes, condos, and town-homes actively listed in November, according to the Denver Metro Association of Realtors. That marked a 7.8% drop on a year-over-year basis. For comparison, November 2016 showed only a 2.08% drop from November 2015. Inventory levels fell 18.71% from October, although surprisingly, that wasn’t much bigger than the 17.37% month-to-month drop the market experienced last year. Overall, there was only a 1.27-month supply of unsold homes on the market in November, a mere 5.5 weeks of homes on the market. That’s 13.6% lower than in November 2016.
The lack of inventory is especially severe for homes priced from $100,000 to just under $500,000. In that price band, there is less than a month’s worth of inventory. For homes priced from $200,000 to $299,999, there is less than a 2-weeks supply – 1.7 weeks of inventory, to be exact. It doesn’t get much better for homes priced from $300,000 to $399,999, where there is a 2.17-week supply of unsold homes. Even for homes priced at $1 million or more, there is only 6.35 months of inventory, which is a 15.6% drop from the inventory level a year ago.
The low supply and strong demand continue to drive up home prices. The average price of a single-family home sold last month was $479,192, up 8.68% from November of last year. Rising prices resulted in a record $23.116 billion in total home sales in the first 11 months of the year. That is $886 million more than all the homes sold last year, which was a record year for home sales dollar volume.