|All data taken from REColorado on May 10, 2016 for the 8 county Denver Metro Area.|
|How Hot is Denver Real Estate?|
- May 2016 inventory of single family and condo rose less than .1% from a year ago. Total Active listings today is reporting 6109 compared to 6134 12 months ago.
- Due to the lower inventory, the number of closed properties has decreased 12% from April 2015.
- The average price of a single family home today is $434,675 compared to $401,519 one year ago. An 8% increase.
- The average price of a condominium is $285,391 today compared to $255,084 one year earlier or an increase of 12%.
- The Days on the Market has remained the same over one year ago and today stands at 25 days on the market.
How Does 2016 Compare with 2015 through April?
- The total number of sold properties in 2015 was 16,220 through April. In 2016 that number is 16,329 or a 109 property increase. However, both March and April of 2016 recorded fewer sales than March and April of 2015. Does this signify a buyer behavior pattern is starting to slow down their purchasing frenzy? Possibly, but watching this trend through the summer will most certainly give the prognosticators more data to predict the future.
- Average Prices continue to rise at 8% per year. Some neighborhoods have out performed that number by a significant amount, specifically in the lower or entry level price points. As of today, there are only 108 single family homes for sale in the entire Denver market place below $250,000. Buyers are getting priced out of the market, which will slow buyer behavior down.
- The number of properties placed under contract in April 2016 is 7% less than April 2015. This would also indicate the buyer behavior is starting to slow down.
As buyer behavior buying patterns slow down, we will see inventory rise through the balance of 2016 and prices to level off. There is a sense in the market we are changing the market dynamics, but by all means, it remains favorable for sellers to sell their properties today at top dollar and for buyers to be able to enter the market and still see normal appreciation levels for the next several years.
What Should Buyers Do in Today’s Market?
- Be Ready To Buy! Homes below $500,000 are moving quickly.
- Know you will not have much room for negotiations during inspections. Understand the condition of your new purchase very well.
- Real estate is a very localized product to neighborhoods. Study the data from the area you want to live and compare the research for that neighborhood over time to understand the trends.
What Should Sellers do in Today’s Market?
- Be positioned as the best conditioned home. You will get top dollar this way.
- Appraisals haven’t yet caught up with the buyer willingness to pay higher than list prices. Have a strong strategy to get your home appraised before taking it off the market on the highest offer.
- It’s May, make your home front sparkle from the street to attract the most traffic as best you can.