The story of 2016’s fourth quarter was the low inventory levels in the Denver metro housing market. As the New Year passed and I saw more for sale signs popping up in neighborhoods across the Denver area, I anticipated the January housing report. I wondered if we would see an improvement in the inventory levels. I have heard that elections and the fear of the unknown can have a slowing effect on the housing market. Perhaps with this crazy election we just had, more people than usual were just waiting until after the new year to list their house.
Well, the numbers are in and it looks like there isn’t much improvement on inventory. Slightly more homes were listed in January of 2017 than January of 2016, but only up by 1.2%, which equates to exactly 50 houses.
With the already low inventory of the previous months Denver’s inventory of active listings is down a whopping 45.1% compared to January of last year. This puts Denver’s months supply of inventory at just 1.1. (Months supply of inventory is how long it will take to sell all homes currently on the market.) That is down from the January 2016’s months supply of inventory which was at 1.9.
Not only is inventory down but sales are up, creating an even tighter market for homebuyers. Sold listings in January were up 5.1% over January 2016. Now keep in mind that sold listings actually went under contract in December or earlier. Homes that went under contract in January actually went up at a higher rate, up 13.3% over January 2016.
Both the median and average home price went up 8.4% over the previous January, with the median home price coming in at $341,500 and average at $396,131.
If you have been thinking of listing your home, it’s a good time with inventory levels so low. Average days on the market for a single family home is at 41 and and 26 days for condos and townhomes. Although, it’s still just as important as ever to price your home right!
If you are a homebuyer you can still expect some hefty competition and multiple offers. Hang in there and don’t get discouraged! If you need help finding the right home for you, call me today! I have quite a knack for writing winning offers and would be honored to help you find your new home.
Denver Metro REALTOR