This market update was discussed in the December Monthly Roundup Podcast.
While new listings are down slightly and the total number of homes sold is down nearly 16% this is not a sign of the market falling apart. Buyers are welcoming the slight increase of the Days On Market, we are still well below the national average, allowing them just a little bit more time to find the property that best suits their housing needs. Appreciation in the Denver market still remains above average and December turned out to be a strong month for showings indicating that spring should be a competitive buying market yet again.
Homes For Sale inventory has a lot of room for growth before any local market concerns are validated, growth in this category is not indicative of a looming crash. Denver's market could have inventory double and it still wouldn't qualify as a strong buyers market. At the moment buying opportunities have slightly increased but Denver is still very much a seller's market considering the lack of available inventory. As the spring and summer buying season approaches we should expect the market to continue leaning in the seller's favor due to the limited amount of inventory and strong demand for housing in the city.
Record-breaking growth in the housing market should not be viewed as a dangerous sign nor is it a sign of an overheated market. Homes are often the most expensive they ever have been. In Denver 42 of the last 46 years, homes have been at their highest median sales price ever. We should expect the value of the housing market to continue to grow over time, it is an indicator of home values continuing to rise.