The latest market data from Denver Metro Association of Realtors was recently released with one of the top headlines being the average single-family home sale price hit a record high of $553,371. The new year-to-date high landed at $527.244. Not only is the housing market soaring, but the condominium market is also hot with an average sold price of $368,565 in April which was up 2.62% from March and 2.17% year to date.
These numbers signal that even though there is a 27.09% increase in inventory for single-family homes year to date and a 27.27% increase on average days on the market year to date, the power is still in the seller's hands with a 1.51% increase in the average sold price. Furthermore, according to the DMAR the average days on market for single family homes in the metro area has decreased by 12.50% from last month to 28 days. However, ReColorado has the average days on market higher at 41 days which is a 14.6% decreases from last month.
Overall there is only 1.50 months of single-family home inventory, which is significantly lower than the five to six months of inventory needed to make this market a buyers market. This includes the luxury market which was previously a buyers market in February, but now has 4.41 months of inventory for single family detached properties and 3.24 for condos.
Another noteworthy stat from the recent DMAR market report was the sold price to list price ratio was at 99.24 percent. From 2015 to 2018 homes were selling for over 100 percent of list price. There is some negotiating going on, but sellers are still in the driver seat.
In fact, the luxury market thrived in April with an increase in pricing, number of homes sold (32.3% increase since March), and overall sales volume (234 sold properties over a million dollars). Consequently, the luxury market also saw a decrease in both average and median days on the market with the median days on the market dropping to 14 days. This was a decrease from the 21 days in March and 19 days in April 2018. The highest single family detached property sold for $8.5 million while the highest condo sold for $5,434,891.
Not only are people steadily buying houses, but the apartment rental market experienced a decline in vacancy from 5.8% to 5.4% and an increase in rent from $1455 to $1480. If there is an end in sight to when this market will cool, it is looking far out on the horizon. Some real estate experts say the market is cooling, but if this is true, then it is at a very slow rate.
Source: https://www.dmarealtors.com/sites/default/files/content/dmar_markettrendsreport_may2019_0.pdf