To outside observers and armchair quarterbacks, the Denver real estate market continues to be white hot. But what does that actually mean for folks that are getting ready to list their homes? What can they expect?
As with anything, there are no guarantees. But the recent home sale trends in the Denver area can help you manage your expectations and ensure that you price your home well so that it appeals to potential buyers.
Let’s take a look at some Denver real estate market trends from the Fall of 2018. These data represent the months of September, October, and November (through the 27th).
Denver Real Estate Inventory
The number of months of real estate inventory helps to determine how hot a market is. Anything under six months is a good market to be in as a home seller. Under three months is pretty much white hot.
In Denver, the available inventory is consistently below 3 months, even considering a slight uptick in the month of November. Real estate sales tend to be seasonal, so this isn’t surprising either.
We can assume that this is a seasonal issue by looking at the number of new listings. The chart below shows that the number of new listing in November decreased from 5,278 to 3,373, yet the inventory level increased. This suggests that fewer people are actively looking to buy than there were earlier in the fall.
This trend, however, does not appear to have a negative effect on the value of and prices of homes in the Denver market.
For example, the average number of days a house spends on the market stayed steady at 28 in November.
Pricing and Sales in the Denver Real Estate Market
Pricing and sales data provide additional indicators that the Denver market continues to favor home sellers.
The average listing price in the Denver market took a bit of a seasonal dip, from just over $486,000 in September to around $466,000 in October and November.
Listing prices only tell part of the story. The sale price and the relation between those two prices help to flesh out the relative strength of the market.
Average sale prices align closely with listing prices. In September, the average sale price was $452,931. October fared a bit better with an average sale price of $463,978. To this point in November, the average sale price stands at $457,512. While the average listing price ticked down over this three-month period, the average sale price actually increased.
If we compare these price data, we see that, on average, homes sell for 99% of the listing price. (Note: November is complete because these data were pulled before the end of the month.)
If we want to see how November stacks up to September and October, we can use another measure to shed some light on the question: the average price per square foot. The chart below shows consistency throughout the Fall for this metric. September and November are identical at $212 per square foot. October is a smidge higher at $214.
While the inventory and listing numbers suggest a seasonal decline the number of available homes and the number of people looking to buy, the pricing data for the Fall of 2018 shows that even with these seasonal trends in effect, homes in the Denver real estate market retain their value and continue to sell, on average, very close to the listing price.
If you’re looking to sell your home in the Denver area and have any questions, feel free to contact us here at Blue Match for a free consultation. We’re always happy to help.