This market update was discussed in the June 2019 round-up.
The Denver real estate market has been on a consistent trend in 2019. Inventory is continuing to build and the average days on the market continues to rise. It’s important to notice the median days on the market has only seen a very slight increase year over year. Inventory and DOM are directly correlated, as one rises the other will follow.
The decrease in close price/list price is a great sign for buyers, sellers are having to work with them more and are starting to give concessions at closing. Many sellers are still trying to aggressively price their homes for maximum value but fewer homes are being sold at above list price.
Denver has not had this much inventory available since the summer of 2013, while inventory is up we are still very much in a strong sellers market. Even with the increased inventory, we are still much closer to the record low than the record high.
Even with inventory up 28% year over year the amount of homes sold has remained consistent. While there has been a 3% reduction in homes sold there is a huge uptick in homes under contract. Lenders have been very busy which can slow down completing the sale and skew the data. By the end of July or August 2019, there could be more total homes sold than in 2018.
Showings in June were down slightly from earlier months but this not come as a surprise. All previous years showed the same dip in June before starting to pick back as the summer winds down. Also, with an increase in inventory, the number of showings per individual home will decrease as buyers have more options to chose from.
Inventory is up and interest rates are down, giving buyers a unique opportunity to own a home at a lower cost than 2018 even though the average price of a home has increased. This circumstance is even more advantageous for Nomad and house hackers. $100 per month could turn a property from cash flow neutral to positive, or allow investors to increase their search to include properties which were previously out of budget.