Denver Real Estate Market Update – October 2018
The Denver metro area has been seeing inventory increases over the last few months and September was no exception. The month ended with 8,807 properties on the market. Inventory was up 7.04 percent over August and 16.10 percent over September of 2017. Homebuyers should be feeling a bit of relief. Although, make no mistake, Denver is still a seller’s market.
While inventory was up, the number of sales was down significantly in September. 3,983 homes sold in the month of September. That was down 28.91 percent from August and down 20.24 percent from September of 2017.
The average home price in Denver came in at $455,980 in September. This was down 3.36 percent from August and up 6.83 percent over September of 2017.
Detached single family homes had an average sales price of $502,034 down 3.79 percent from August and up 6.08 percent over September of 2017.
Attached homes (condos and town homes) seemed to fair better on retaining their average sales price. The average sales price for an attached home came in at $347,629 in September. This is actually up .83 percent from August and up 11.49 percent over September of 2017.
So you can see that detached homes and attached homes in the Denver area tell a bit of a different story last month.
Let’s talk a bit more about that 6.83 percent that average home prices are up over last September. For the longest time year over year increases were in the double digits. This summer I started to see these year over year gains drop below ten percent. This is the forth month in a row of single digit year over year gains. And 6.83 percent is the lowest of the last few months. I believe we may be seeing a bit of slow down in the Denver market. But I believe this is a much needed slow down and it’s healthy. I don’t think that it is cause for alarm and I don’t think that it means we will see year over year decreases any time in the near future.
Double digit increases in value is not sustainable. If we kept up that rate of growth then homes would see over a 100 percent increase within 10 years. A much healthy position for growth is around three percent, gains that more closely match inflation or cost of living increases. So seeing a slow down in these year over year gains is healthy, nothing to be scared of.
If you are planning to buy or sell a home in the Denver area contact Courtney Murphy. Courtney is a Denver metro Realtor. She is a long time resident with experience in both new built home and resale sales. Don’t start your house shopping without her!
