Low inventory continues to keep Denver home prices high and the time on market low, according to the April report from the Denver Metro Association of Realtors.
In April, the median sale price of a single-family home was $640,000, up 3.2% from March but down 5.9% from a year earlier when the Denver metro was in the grip of a buying frenzy.
“The inventory decline in an already tight market raises some concern as to what the rest of the year has in store for the Denver market,” says Libby Levinson-Katz, chair of the DMAR market trends committee.
“The real question on everyone’s mind is when will more inventory hit the market?”
Low inventory across all categories
The number of single-family homes and condos on the market rose slightly by 2.3% from March to April to 4,620 properties, lower than the historical average increase of 10.4%. It’s the smallest increase since the market decreased by .57% in 2014.
New listings sell quickly and spend a median of seven days on the market compared to 10 days in March.
“While the frenzy we experienced last year is unlikely to return, the Luxury Market (homes priced over $1 million) in the Denver Metro remains strong and may be the most balanced of the local markets, with a slight lean towards sellers,” says Nick DiPasquale, with West + Main, who is a member of the DMAR market trends committee.
“As a whole, (the luxury market) is trailing the hectic pace of 2022 and is on par with 2021.”
Although the market is calmer, many sellers receive multiple offers, says Jared Blank, managing partner of The Agency Denver.
“We are seeing multiple offers for new to market homes that are priced correctly — which is a win-win for both buyer and seller. The reason it’s mutually beneficial, is buyers likely are up agains 1-5 other offers Instead of 15+ offers they were up against last year at this time for a similar type home.”
High-interest rates keep sellers out
In the Signature Market (homes sold for $750,000 to $999,999), sellers remain on the sidelines due to high-interest rates, says Amanda Snitker, a DMAR market trends committee member.
“Buyers in this price segment have less competition than last year and less to choose from, making ‘good’ properties competitive,” she says. “Buyers are still finding themselves in multiple offer situations.”
Homes priced correctly sell quickly, says Kacey Bingham, managing partner of The Agency Denver.
“The good houses are selling in a one weekend cycle again in all price points — no doubt. What makes a ‘good’ house is those homes that have been decluttered, priced well, presented well, and any deferred maintenance taken care of.”
High-interest rates also limit the number of available homes in the Premier Market (homes sold for $500,000 to $749,999).
“While many sellers are holding on to their homes because of their low-interest mortgage rates, those needing to sell can benefit from the lack of inventory and realize a very nice return on their investment,” says Susan Thayer with the Thayer Group, a member of the DMAR market trends committee.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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