Denver Real Estate Market Update – May 2018
It’s May in Denver and the big news in the Denver real estate market this month is average home price! In February of this year the average sales price of a single family home in Denver hit over a half million dollars for the first time ever.
In April that average sales price was up to $543,058. That is up 8.17 percent in just two months. Now with this sort of growth, you may be thinking that you need to go out and buy ten homes in Denver. And yes, we have seen some skyrocketing prices this spring. But this type of growth, four percent per month, will not continue. This growth is just an indication of the hot market we are seeing this spring. We still have lots of buyers and not enough homes on the market.
I believe we will continue to see the average sales price rise through June and see our typical seasonal drops come July and August.
Year over year, the average sales price of a single family home is up 11.38 percent. I expect that we will see that same growth within the next year, maybe a bit better.
At the end of April active inventory was at 5,160. This is up 11.71% over March but down 3.75% from April of 2017. So yes, this spring there is less inventory than there was in 2017. Not good news for homebuyers.
In April 6,097 homes went under contract. This is up 11.1% over March and up 5.58% over April of 2017.
If you are planning to purchase a home, don’t lose heart! Just educate yourself and know what to expect. Most homes go on the market either Thursday or Friday. They show through the weekend and go under contract Monday or Tuesday.
You must prepare yourself to be competitive in your offer on a home. I suggest watching my video below.
Sellers, no surprise, it’s a great time to sell! If you are planning to sell, I suggest listing your home in May or June. July typically starts to see a slow down. Although it’s not the end of the world if you can’t list until later in the summer.
And remember, even though this is a seller’s market, you must price your home right! Too often I see sellers who think their home is worth much more than it is just because of all the real estate hype out there. Look at the comps in your area and listen to your Realtor’s suggestions.
If you are planning to buy or sell a home in the Denver area contact me. I would love the opportunity to earn your business!