Metro Denver is Still a Seller’s Market
Fact: Housing inventory under five months is considered a home seller’s market. In Metro Denver, the month of September ended with 2.04 months of single-family home inventory and 2.12 months of condos for sale, which clearly indicates we are still in a seller’s market.
While inventory has been steadily increasing over the past several months, September still only ended with 9,286 active listings. For comparison, the record-high housing inventory for the month of September was in 2006 with 31,450 active listings, and 2015 represented the record low with 7,516.
The Luxury Market is the Exception
The price segments for which homebuyers have gained more negotiating power are condos priced between $750,000 and $999,999 and the single-family homes priced over $1 million.
If buyers are wanting to buy a single-family luxury home, now may be the time. With over six months of inventory for homes priced $1 million plus, we’ve moved from a balanced market slightly into a buyer’s market in the luxury segment.
Housing Price Appreciation Has Slowed, but Has Not Reversed
Overall in the Denver-area residential market, while prices have decreased month over month, the average sold price of a home in September was still up 6.06% year over year and 2.52% year to date, $483,734 and $487,814 respectively. Year to date, the close-price to list-price ratio was at 99.31% in September, whereas it has been slightly over 100% since 2015.
Month over month, single-family homes in the Luxury Market had price depreciations with homes selling 96.49% from list-price to close-price, down 0.88% month over month and 0.42% from one year ago. Slowing down too was the single-family sales volume that fell 16.47%month over month but was still up year over year with an increase of 45.09%.
In general, you could say we’ve been turning from an extremely fast-paced market to a slower moving, healthier one this year.