Seasonal Cooldown is Expected
Home sales usually peak mid-summer and then the market begins its seasonal cooldown just in time for the fall. The lowest number of both new listings and number of homes sold usually occurs in December or January. It appears we are right on track with that trend this year.
The number of new listings added to the Denver-area market in October was down 10% month over month, but still up 4.37% year to date. The 5,425 homes added was the lowest number of new listings in a given month since February! This may have contributed to the decline in homes sold in October, down 6.4% compared to September, yet that’s still nearly 2% more year to date.
Homes are also sitting on the market longer. The average days on market year to date was at 30, up 25% compared to last year which was at 24 days.
The Luxury Market is Well-ahead of Last Year’s Pace
Market statistics signal it remains a good time for buying and selling of luxury homes. In fact, year to date, 2019 is well-ahead of last year’s pace in the luxury segment (homes priced $1 million+).
There was a total of 2,051 luxury homes that sold year to date in October compared to 1,896 this same time last year, an increase of 8%. Luxury condo sales continued to perform well with 237 condos sold year to date, an increase of 56% over last year. Year to date, single-family home sales have increased from 1,744 in 2018 to 1,814 in 2019, up 4%.
Unlike the entire residential market, the Luxury Market’s days on market improved. Month over month, median days on market in the luxury segment went from 38 in September to 28 in October.
Furthermore, months of inventory for luxury single-family homes is 6.13, which is the equal balance between buyers and sellers. Sellers continue to maintain an edge with condos with 4.35 months of inventory. While price reductions have become common, the year-to-date close-to-list price ratio has remained steady for luxury homes at 97.42% in 2019 compared to 97.35% in 2018.