Denver Real Estate Market Update – April 2019
The average sales price in Denver for March came in at $480,486. This was up 3.57 percent over February and up 1.79 percent over March 2018.
The number that really sticks out if the 1.79 percent increase over last March. For years Denver has been seeing double digit growth up until the middle of 2018. Those percentages started to drop. Now we are looking at an increase of less than 2 percent. In my opinion, Denver has reached it’s temporary top. But I also don’t believe that this means prices are going to come crashing down. We have just reached our affordability high point for the time being.
I do want to break down that average sales price into detached and attached homes. The average sales price in Denver for a single family attached home came in at $530,897. That’s up 3.27 percent over February and up 1.26 percent over last March. The average sales price in Denver for an attached home came in at 360,875.
I also want to touch on median sales price in the Denver area. Not sure if you saw the article last month in the Denver Post about median home price. It was big news: median sales price in Denver dropped in February for the first time in seven years. They were talking about the year over year median price. In March the median home price came in at $415,000. This was up over March of 2018 by 1.53 percent.
March ended with 6,292 listings on the market in Denver. That’s up 4.57 percent over February and up 36.22 percent over March 2018. So, we do have more inventory than last year. I believe that this accounts for some of the slow down in the rise of average sales price. Although the gap lessened a bit last month. In February we saw a year over year increase in inventory close to 47 percent. Whereas our year over year increase in March was down to 36.22 percent.
There were 6,197 new listings in the Denver area in March. That was up 25.75 percent from February but down 3.49 percent from March of 2017.
4,162 homes sold in March. This was up 20.01 percent over February but down 11.71 percent from March of 2018.
But even though year over year sold homes were down in March. More homes went under contract this March than March of 2018. 5,660 homes went under contract in March, up 27.75 percent over February and up 4.27 percent over March of 2018.
In the last few months the luxury market, homes priced over 1 million, had fallen into buyer’s market territory. In March, the luxury market moved into a balanced market with 5.6 months of inventory on the market. How do we define whether a market is a buyer’s market, seller’s market or balanced? Under five months of inventory is a seller’s market. Five to six months of inventory is a balanced market. And over 6 months of inventory is a buyer’s market. Homes priced below 1 million in the Denver area are still sitting in a strong seller’s market.
Buying or selling a home in the Denver area contact Courtney Murphy. Courtney is a Denver metro Realtor and long time resident with experience in both resale and new built home sales.