This market update was discussed in the February Roundup podcast.
March is a busy month for Denver. New listings will continue to rise as the spring weather comes upon us. This will increase the amount of available inventory in the market but the start of the new season will bring out more buyers as well. Even though we have seen an increase in inventory of nearly 50% we are still far below a balanced market. This spring we can expect sellers to continue to hold the advantage and they should be receiving multiple offers as the buying season heats up.
Denver’s data snapshot is continuing to tell a very similar story to what has been told the last couple of months. New listings and home under contract are seeing slow, but steady growth. Inventory is seeing gains but it is still not enough to satiate the housing demands of the Denver market. The average days on market is trending upwards but is still far below average. These are all good things. Our market has been pedal to the metal for the last 4 years and we are slowly pulling off that and heading towards a healthier market. Entry level homes will continue to be in high demand and buyers should expect fierce competition for them.
Showings are continuing to trend upwards. After a slow finish the 2018 season buyers are back out and looking at houses. We are not back to the record levels of the past couple of years but buyers should be expecting to bump elbows with other people at open houses this spring.
The key take away on this graph lies within the 25-34 year old. By this point in most peoples lives, they have completed their schooling and should be entering into their careers and earning a higher wage. This usually leads to a person or a family’s first home purchase. What we are seeing recently though is that more people in the 25-34 year old age group are struggling to buy a home. From 1960-2005 the percentage of males and females who lived at home remained fairly consistent, about 10%. After 2005 we start to see a steep rise in that percentage. Roughly 22% of males in this age group are still living at home. Multiple factors are leading to the difficulty in purchasing a home; stagnant wages, student loans, and the desire to live in areas with higher home values. This is good news for investors. This pent up demand should keep rental houses occupied and keep rental rates growing.