It seems as though winter hasn’t had a significant effect on the Denver real estate market outside of normal seasonal shifts. Property continues to move quickly in and around Denver and, on average, fetches a pretty good price.
As always, looking at the housing trends over the past few months may help you decide when you want to start the sale process and how you’d like to approach it. With that in mind, let’s look at some of the most recent data from the Denver real estate market.
(Remember that the data for February in these charts only reflects the first third of the month, and that the numbers will adjust by the end of the month.)
Inventory Remains Low
When our February caveat is applied to this chart, it actually becomes even more remarkable. The Denver real estate market is averaging less than two months of inventory over the past year. That’s just insane.
What’s really interesting about this is that if you look at the past six months, since about August 2017, and compare the amount of inventory with the number of new listings you’ll notice that there were fewer homes being listed in that period. However, the months of inventory continues to decline. That suggests stability in this seller’s market.
Another interesting wrinkle in this data is how long it’s taking homes to sell. You would think that the number of days on market for homes in the Denver area would trend along the same lines as inventory and new listings. However, the data shows an inverse relationship.
Over that same period, the average days on market (DOM) increased from 25 in August, peaked at 38 in December and started to decline last month at 37. Nevertheless, these numbers still sit right around the 4–6-week range, which is still pretty fast considering all the negotiating and work that goes into finalizing a sale.
The point here is to not let one set of data upend your plan to sell your home. The average DOM is ticking down so it’s worth keeping an eye on in the next few months to see how strong the average trends up or down.
Number of Sales and Sale Prices in the Denver Real Estate Market
To give a bit more context to the charts above, let’s turn to some specific sales data. These should help give an indication of the relative health of the Denver real estate market.
The total number of sales declined in January by almost 1,600. Thinking back about the increased average DOM and the decline in new listings in December and January and this shouldn’t come as a huge shock.
However, what is a bit more reassuring is that despite a lower number of total sales, prices in the market remain pretty consistent.
In fact, average sales price has ticked up since November. Average sale price in January 2018 was $437,000, which is only $6,000 less than the high of $443,000 in June 2017.
At the same time, the price per square foot shows a slow, but steady increase in the Denver real estate market. This is a useful metric when pricing your home. See our post about asking price vs market price for a more in-depth look at how to use these data.
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.