Home sellers in Metro Denver continue to see year-over-year home price appreciation and more homes under contract, yet buyers have more choices as housing inventory has increased.
In January, the number of new residential listings (single-family and condos) leaped 109.7 percent from December to 4,821, an increase of 13.6 percent year over year. Active listings were up just 5.45 percent from the month prior, and up 52 percent compared to 2018’s record-low January reaching 5,881. Notably, the number of active listings is still significantly below the historic average in the month of January of 13,469 (1985-2018).
“Choices, choices, choices! Buyers should be doing a happy dance because they finally have some choices,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Even though the Denver metro area is still a seller’s market in most price ranges, there’s no doubt this is the best time to buy in a long time!”
According to Schafer, it’s often said that the Denver real estate market doesn't shift into full gear until after the Super Bowl, but with more choices, interest rates lower than expected and warmer weather than usual, homebuyers were putting in more contracts in January, up 33.97 percent from December and 7.24 percent year over year. As such, higher home sales are expected next month.
While buyers are taking advantage of their housing choices, home sellers are still seeing appreciation with the average sold price of a home up 2.89 percent year over year, an increase from $448,132 in January 2018 to $461,101 in January 2019.
DMAR’s 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 “Classic Market” (properties sold between $400,000 and $499,999). In January 2019, 93 homes sold and closed for $1 million or greater – down 31.11 percent from December and 14.68 percent year over year. The closed dollar volume in the luxury segment was $150,646,236, down 24.26 percent from December and 9.37 percent year over year.
“There are 7.65 months of inventory in the $1 million plus price point, so the pendulum has fully swung and the Luxury Market has officially changed to a buyer’s market,” said Andrew Abrams, DMAR Market Trends Committee member and metro Denver REALTOR®. “However, that hasn’t necessarily changed how quickly luxury buyers need to pull the trigger.”
According to Abrams, the most astonishing stat of the month is the median days on market. From 2016 to 2018, the median days on market has ranged from 71 to 84. In January, the median days on market for a home was at 41, which is less than half the days from the previous year.
The highest priced single-family home that sold in January was $5.1 million representing four bedrooms, six bathrooms and 10,188 above ground square feet in Boulder. The highest priced condo sale was $10,750,000 million representing three bedrooms, five bathrooms and 6,295 above ground square feet in Denver.