While October brought with it a track back to normal seasonality with an increase in housing inventory, so too did it bring real estate market factors – including sales volume, days on market, and housing prices – that continue to favor home sellers in the Denver area.
More Inventory Makes for a Healthier Market
After years of a lack of homes on the market for buyers to choose from, housing inventory is trending up. For the month of October, record-low inventory occurred last year with 6,312 listings and has steadily increased to 8,539 last month. For a historical comparison, the average active listings for the month of October between 1985 through 2017 is 16,003. So, increased inventory is a welcomed change because supply and demand play a critical role in the health of the market.
Market Continues to Favor Sellers
The market is strong which is abundantly apparent in the total sales volume year to date. This year, through October, sales volume has exceeded $22.5 billion, up 5.45 percent from last year. Yet, many agents are experiencing price reductions. Those reductions are mostly instances in which sellers are pricing homes based on the booming summer sales that have since seasonally slowed.
The average and median home prices in October were $471,321 and $400,000 respectively, up 7.12 percent and 5.26 percent compared to 2017. The average sold price of a single-family home last month was $526,092, up 8.43 percent year over year.
Priced right, homes are still selling quickly. The average days a home was on the market year to date through October was the same, at 24 days, as in 2015, 2016 and 2017.
Luxury Market Highlights
The 161 homes priced $1 million and greater that sold in October is consistent with the 165 homes that sold in October of last year. Year to date, there have been 1,805 total luxury homes that have sold, accumulating an astonishing $2.75 billion in sales volume in the luxury segment. Last year, those figures were lower even though it too was a strong market at 1,432 total luxury homes that sold year to date in 2017 through October, equating to a sales volume of $2.19 billion.
With a record-breaking, hot real estate streak over the past several years, a shift to a more balanced market is in due time. Right now continues to be an incredible time to both buy and sell.