Housing inventory in the Denver area is up nearly 47 percent year to date compared to last year, but sales are down.
In November, year to date, housing inventory has increased 46.76 percent compared to last year in the residential market (single-family and condos), but was down 11.82 percent from last month. Meanwhile, fewer homes sold in the Denver area in November, down 17.27 percent from October, and that dropped the number of sales year to date to less than any in the past three years.
Notably, the low months of housing inventory will keep homes prices strong according to Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. While the average sold price of $462,344 was down 6.3 percent from the peak price mid-year, it is up 6.47 percent year over year.
“When we looked a little closer, we saw the average sold price was up 8.68 percent year to date compared to 2017,” said Schafer. “Furthermore, single-family homes priced under $1 million had three months or less of inventory, showing sellers still had control in the bulk of the market. Anything under five months is considered a seller’s market and over six months is a buyer’s market.”
While the downward shift in the market that started mid-year continued in November, Schafer comments, “The increase in home choices could make it possible for more homebuyers to get what they wish for this Christmas. Meanwhile, the low months of inventory will keep prices strong and sellers should continue to have plenty of money to do their holiday shopping, too.”
Looking deeper into the numbers, for the entire residential market, November ended with 7,530 active homes on the market, down 11.82 percent from the prior month and up 46.76 percent year over year. At month’s end, there were 3,964 homes under contract, down 10.6 percent from the prior month and 3.03 percent year over year. The number of homes sold dropped to 3,732, down 17.27 percent from October and 23.6 percent year over year. Sales volume also dropped by 18.6 percent month over month and year over year to $1.73 billion.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and – new to the report - “Classic Market” (properties sold between $400,000 and $499,999). In November, 121 homes sold and closed for $1 million or greater – down 30 percent from the previous month and down 20.39 percent year over year. The closed dollar volume in November in the luxury segment was approximately $199.5 million, down 29.67 percent from the previous month and 13 percent year over year.
The highest priced single-family home sold in November was $4,855,535 representing six bedrooms, nine bathrooms and 7,785 above ground square feet in Cherry Hills Village. The listing agents for this transaction are DMAR members. The highest priced condo sold was $4.5 million representing three bedrooms, three bathrooms and 4,903 above ground square feet in Denver. The listing and selling agents for this transaction are DMAR members.
“The luxury single-family home segment is sitting at 7.22 months of inventory, whereas the luxury condo market is sitting at 6.67 months. This is an important indicator as this shows that the Luxury Market is officially a buyer’s market,” states Libby Levinson, DMAR Market Trends Committee member and metro Denver REALTOR®. “With interest rates on the rise, this may be the best time for buyers in the Luxury Market with low rates and the ability to negotiate.”
Notably, year to date, the single-family Luxury Market experienced 1,851 homes sold versus 1,521 in 2017. Conversely, the luxury condo market experienced 170 units sold in 2017 with slightly less units sold in 2018 with 167. Days on market for single-family homes have held strong at 73 days for November and October, as well as November of 2017.
“So, as things appear to be shifting towards buyers, it’s time to get back-to-basics,” adds Levinson. “Take your time to rest up over the holidays because 2019 promises to be another strong year with homebuyers taking the lead in the Luxury Market.”
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.