Fewer Choices for Homebuyers in the Denver Area this Holiday Season
In November, the number of new listings added to the Denver-area housing market dropped 32% month over month and 6.5% year over year. As a result, active inventory dropped from 8,557 in October to 6,988 in November, down 18%. While we should expect a seasonal slowdown, this is a big drop even for this time of year when you compare numbers from Q4 2018 which experienced a surge of new listings.
Fewer Homes on the Market Means it’s Tougher for Homebuyers
With less homes to choose from, homebuyers are taking more time to find their dream home and then, once they do, they are having to compete! In November, closed sales were down nearly 23% month over month, but notably sales were still up over 2% year to date compared to 2018. The number of homes that went under contract dropped 10.8% month over month which indicates the number of homes sold will likely be down next month, too.
Home Prices Steady in the Luxury Market
For the housing segment of homes priced $1 million and up, while inventory has decreased from the previous month, the close-price-to-list-price ratio has remained steady from both the previous month and previous year.
Out of the 166 luxury properties that sold in November, about 90% of them were single-family homes, which could explain why the months of inventory for single-family properties is at the high end of a balanced market with 5.45 months of inventory. Likewise, months of inventory for condos shows a buyer’s market at seven months. For greater perspective, it is important to note that year-to-date luxury condo sales were up 50% from the previous year.
The average months of inventory across all price points is 2.13, showing that the Luxury Market is on its own island. The condo market has higher months of inventory compared to single-family properties throughout all price points. This shows that, overall, there is more demand than supply in single-family homes relative to condos in the entire residential market.