We just wrapped up the 1st quarter of 2018.
Denver Metro All Properties
- Median Sales Price $404,381 up 9.2% from March 2017
- New Listings 5,926 down -6.0% from March 2017
- Under Contract 5,373 up 5.9% from March 2017
- Sold Listings 4,203 down -8.3% from March 2017
- Median Days on Market was 5 days, which is down from 6 in March 2018
- Average Sold to List Price % was 100.7% which was up slightly from a year ago
The key stat to keep an eye on is the months/weeks of inventory. A balanced market (according to the National Association of Realtors) is around 6 months. Denver has been operating at 4-6 weeks of inventory (a month to a month and a half). So if you are wondering when prices will start to level off or decrease, we will need to either get the inventory to increase (by builders increasing the output of new units available) or a decrease in demand (people stop moving to Denver, people moving out of the area, or housing goes well beyond affordability).
There are no signs that our current supply level is going to change and I don’t really see a slow down in people moving to Denver. Our best option is to help builders get more supply into market to meet demand. And even this will be a challenge with the regulations in place and a shortage of skilled labor builders need to get their projects done.
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 $291,500 up 12.1% from March 2017 (and down slightly from February 2018)
- New Listings 1,682 down -3.0% from March 2017
- Sold Listings 1,288down -2.6% from March 2017
Denver Metro – Single Family
- Median Sales Price $439,000 up 8.4% from March 2017
- New Listings 4,244 down -7.1% from March 2017
- Sold Listings 2,915 down -10.6% from March 2017
The local news has reported recently that the “average” home prices rose above $500,000 for the first time. A couple of things to look at with this statement. Home prices they refer to are single family detached homes and the average last month was $513,810. Average is not the best stat to use for comparison of home prices. If there are a large number of luxury homes with big sold prices, it will artificially raise the average. That’s why it’s better to look at median prices as this represents the true middle of the market, i.e. 50% of homes sold for more and 50% of homes sold for less. And this is the first time that the median for All properties (single family and condo/townhomes) has passed $400K and it was at $404,381.
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/.