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Spring is a great time to take in the smell of the blooming bushes and put things into perspective. This month is all about perspective. It took twice as long to sell a house so far this year compared to this point in 2018. That sounds alarming, doesn't it? The 100 percent increase is accurate, but when you realize that means the median went from six days on the market in 2018 to 12 in 2019, it doesn't look so bad. Less than two weeks on the market is still fast That's what seems to be going on right now: some stats look like the sky is falling, but when put into perspective you can see why prices continue to go up in the Denver Metro area.
The average detached single-family home price hit a high of $553,371 at the end of April and reached a year-to-date high of $527,244. The average condo price was up 2.62 percent from March, ending the month at $368,565. That's also up 2.17 percent year to date.
Another example of the need for perspective: we ended the month with 7,012 active listings. In the past four years, active listings at the end of April were in the low 5,000's. We are up 35.89 percent year to date compared to last year. That is significant; yet we are in a seller's market in every single price range. Overall there is only 1.50 months of single-family inventory and 1.49 months of attached home inventory. That is much lower than the five to six months of inventory needed to equalize the market between buyers and sellers. We saw 7,518 new listings hit the market in April, up 21.28 percent from March, and buyers were gobbling up the new choices with 18.76 percent more homes under contract month over month.
That leads me to one other trend: price reductions. While demand is high, inventory is low and if sellers aren't getting an offer in the first 10 days, they need to consider a price adjustment. At this point between 2015 and 2018. homes were selling for more than 100 percent of list price. Year to date. the close to list price ratio is 99.24 percent While there is some negotiating going on. the average seller is getting within one percent of the asking price. More choices. more contracts, a tiny bit of negotiating room and prices still going up. No matter what your perspective is, that sounds like a good market to me.
~Jill Schafer, Chair of the DMAR Market Trends Committee and Denver real estate agent
DMAR Market Trends, May 2019
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