As wildlife goes into hibernation for the winter, the Denver housing market seems to be moving
toward a state of torpor as well. October marks the fifth straight month of declining sales with a 10%
decrease over September and an 8% drop year-over-year. Both single family and condo sales are
experiencing the same trend coupled with a drop in active inventory of around 17% and 16% respectively
over the previous month. Despite the continued dwindling of sales, sellers still have the higher hand with
average and median sold price up 12% and 9% compared to October 2016.
While the single family housing market is cooling down, for the most part, the luxury category (homes priced $1M and over) is heating up coming in at a 40% increase in sales over September 2017. As for condos, the premier housing market (homes priced from $500,000 to $749,000) is showing promise with sales spiking nearly 44% over last month. As average and median sold price continue to creep up while inventory regresses, affordability is progressively becoming an issue for Denver’s lower and middle class.
Builders are seeing the silver lining of inventory shortage and are looking to profit from it; new
construction permit values are on track to surpass 2016 levels. The timing of project completion,
individual unit costs, and whether they are put up for rent or purchase, will determine how these new
properties affect the market.
If you are thinking about migrating to Denver this winter, we will help you find a new home whatever your budget may be. Give us a call at 720-935-0412 or fill out our contact form and let’s talk!
Note: All data, unless otherwise stated, has been sourced from the October Denver Metro Real Estate Market Trends Report compiled by the Denver Metro Association of Realtors and includes 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.