Last month, the Denver real estate market experienced a typical seasonal slowdown in terms of inventory and days on market (DOM) heading into the holidays, but prices held steady:
- Average prices for both detached single family (DSF) and attached single family (ASF) homes were up slightly from the previous month and up 11.6 percent and 5 percent, respectively, from a year ago;
- Total inventory of active listings dropped significantly to 4,927, while days on market (DOM) jumped to 40 for DSF and 33 for ASF; and
- The percentage of homes selling in seven days or less decreased to 38 percent but was above the historical average of 30 percent.
This year, the housing market followed trends similar to the previous two years – including price increases and low inventory – and early indicators point to 2017 being another extreme sellers market. Among the projections for next year:
- Prices will appreciate the greatest when the market compresses from February through May, slightly retract from June through October and stabilize from November to January;
- Average prices will gain between 8 to 12 percent compared to the previous year; and
- Inventory shortages will be the greatest from March through June.
If these predictions are correct, there will be a greater dependence on loans, which means buyers and sellers need to keep an eye on interest rates. Because if interest rates rise, price appreciation could be stalled at those price points – between $200,000 and $600,000 – where buyers are more dependent on purchasing the home with a loan.
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or firstname.lastname@example.org. I am never too busy for your referrals.
Based on information from REColorado®, Inc. provided by Land Title for the period of Nov. 1, 2016, through Nov. 30, 2016, for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson Counties. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.