The Denver metro real estate market remains strong, but it has cooled off from previous record high home prices and low inventory. In fact, last month signaled good news for homebuyers on a number of levels:
- The average sold price declined to $456,697 for detached single family (DSF) homes and $284,819 for attached single family (ASF) homes;
- The total number of available units for sale increased nearly 11 percent from the previous month;
- Monthly supply of inventory for both DSF and ASF increased from the previous month and from a year ago;
- The average days on market are higher compared to last year due to cancelled contracts; and
- Almost 60 percent of listings that did not sell within the first three weeks have experienced a price reduction, with the average discount around 5 to 6 percent.
While these trends are welcome for buyers and should continue through the end of the year, our market remains competitive in a number of areas:
- The inventory for DSF (1.5 months) and ASF (1.1 months) is still well below the six-month inventory needed for a balanced market;
- Millennials and Baby Boomers continue to fuel the market for homes under $400,000, which has less than one month of inventory and continues to experience multiple offers;
- As mentioned in a recent Wall Street Journal article, “Threat of Lawsuits Crimps Condo Developments,” Denver’s ASF market will remain very competitive until a resolution on construction-defect regulations is reached; and
- Distressed properties – government-owned, bank-owned and short sales – remain low to non-existent for buyers hoping to find homes under fair market value.
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or LaDawn.Sperling@coloradohomes.com. I am never too busy for your referrals.
Based on information from REColorado®, Inc. provided by Land Title for the period of July 1, 2016, through July 31, 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.