Denver Metro All Properties
- Median Sales Price $370,000 up 6.3% from November 2016 and down $2,000 from October of 2017
- New Listings 3,454 down -2.6% from November 2016
- Under Contract 3,999 up 3.5% from November of 2016
- Sold Listings 4,184 down -4.4% from November 2016
- Active Listings 5,026 down -18% from November 2016
- Median Days on Market was 13 days, which was one less than a year ago
- Average Sold to List Price % was 99.3% which was the same as a year ago
Once again, we are seeing that there were more homes sold and put under contract than there were new listings. This is still the reason prices are continuing to increase. Until we start getting more new inventory, or the demand reduces, Denver Metro prices will continue to rise. An year over year increase of 6.3% is certainly lower than the double digit increases we saw last year. However, for a balanced market, that number should be closer to 3-4%.
So what does a balanced market really look like? Depending on who you talk to, it’s about 6 months worth of inventory. What that means is, if you got no more new listings, all of the listings currently active would be sold within 6 months. Right now, we have 5 weeks of inventory, or just over 1 month, which is still a heavy seller’s market. We don’t start to see a balanced market until you get above the $4M price point.
Now let’s look at the difference between the Condo/Townhome market and the detached single family market.
Denver Metro – Condo/Townhome
- Median Sales Price $270,000 up 10.2% from November 2016
- New Listings 1,055 down -1.4% from November 2016
- Sold Listings 1,253 up slightly 0.5% from November 2016
- Median Days on Market was 12 days, which an increase of 3 days from November 2016
- Average Sold to List Price % was 99.6% which was the same as year ago
Denver Metro – Single Family
- Median Sales Price $400,800 up 6.9% from November 2016
- New Listings 2,399 down -3.2% from November 2016
- Sold Listings 2,931 down -6.4% from November 2016
- Median Days on Market was 14 days, which was 2 days less than November 2016
- Average Sold to List Price % was 99.2% which was the same as a year ago
The condo/townhome market is starting to climb as those who have a budget of $300K or less aren’t finding many options in the single family home market in the main metro area.
Should You Wait to Buy A Home?
Are you considering just waiting to see what happens with the market before you purchase a home? Well, if you are purchasing in the $400,000 price range, this could cost you $32,000 or 8%. Here’s how it breaks down:
- A typical $400,000 home will appreciate about $20K in the next 6 months
- Rent for a similar home would cost around $2,000/month (probably more) which is $12,000 over 6 months
So waiting 6 months could cost you $20K in equity and $12K in rent that is not going towards principal pay down for a total of $32K. If you’re on the fence, maybe it’s time to have a chat and look at different scenarios.
The numbers I put here are for the 7 county Denver Metro area. It covers a very broad area. What’s happening in your neighborhood may not reflect these numbers. If you are considering buying or selling a home, it’s important that you understand what’s going on locally in your part of the city and more specifically, your neighborhood. If you would like more detailed information on your neighborhood, please go to http://kenhopsicker.com/home-value-bp. For a great search site, go to http://kenhopsicker.col.exprealty.com/.