In lieu of our standard monthly video, this month we’re focusing our Market Report content on the top three numbers you need to know to understand the current Denver metro real estate market.
ACTIVE INVENTORY - 2,942
October reported 2,942 active homes for sale, which is far below the norm of 7,859 active homes for sale (October average from 2013-2019). Active inventory in Denver is defined as the number of homes actively listed for sale at 10:00 am on the 4th of each month. When inventory is extremely low, it either means that a) homeowners aren’t listing their homes for sale or b) that all the homes that were listed for sale got bought up already. Denver metro is reporting record low inventory for this second reason, and we know that because of this next number...
CLOSED HOME SALES - 51,243
The seven-county metro reports 51,243 closed home sales during January-October, a 4.7% increase from 2020. This growth is primarily driven by a 12.3% increase in closed home sales in Denver county. The total number of sold homes being UP proves that inventory is DOWN because of red hot buyer demand, not reluctant sellers.
BIDDING WAR RELIEF - $3,000,000
The question must be asked at what point the market starts to cool down. In Denver’s case, all price points up to $3.0M are currently selling on average for 0.3%-2.1% OVER asking price. Low interest rates, large amounts of roll-over equity from the sale of previous homes, and a strong economy are giving buyers tremendous purchase power, and the steadily climbing market is the fruit.
what to expect the next 30-60 days
Despite how the numbers might seem above, this late fall and winter season is actually a much cooler market than the late spring and summer. Average home prices are down over $40,000 from July’s peak and bidding wars have cooled from home sales averaging 106% of list-to-close price to 102%. Interest rates are slowly climbing, but remain near historic lows around 3%. This combination of factors is keeping buyers motivated through the winter, while the strength of the market is still keeping even these coldest months a profitable time for homeowners to sell. This is truly a rare season that has potential to provide win-wins for both buyers and sellers.
We present these statistics to keep you informed on the state of the market. Our job is to help you navigate it successfully - to both get you the results you desire when selling, and the home you want at a price you can afford when you buy.
““I sold my first house recently, and had a few friends recommend real estate agents. None of them felt quite right. I found Josh Larsen’s info online and scheduled an appointment. My husband and I were immediately impressed with Josh: his professionalism, obvious knowledge of the market, but primarily his complete willingness to LISTEN and respond to our questions and requests. Throughout the process of getting our house ready to sell, listing and showing it to potential buyers, and completing the sale, Josh was the ONE professional involved who had my complete trust and confidence. He felt more like a friend than an agent, which is something I never expected. I can’t recommend him highly enough!!!”
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