Like our recent afternoon showers, new home choices rained down on buyers this past month. There were 8,789 new listings in May, up 16.97 percent from the previous month. That meant buyers were able to look at a number of homes at a time and make comparisons. A lot of them apparently found what they were looking for. At month’s end, there were 6,470 homes under contract. up 5.65 percent from April.
Even with all of those offers written and accepted. we still ended the month with 8,891 homes for sale. That’s an important number to note It’s the highest end-of-month number of active listings since November 2013 when buyers had 9,352 choices. But when put in perspective, it’s very low compared to the high 11 years ago when we had a whopping 26,333 active listings in May.
Is the increase in inventory flooding the market or is it a much needed dousing? The market has been experiencing a drought of new homes for years, so the increase in inventory is a welcome relief for thirsty buyers. Sellers have been experiencing an unprecedented increase in values. Even with the added inventory, prices were still up a bit. The average sold price for a single-family home in the 11-county metro area year to date was $534,577, up 145 percent. The median hit $450,000 for the first time, up 1.12 percent from this point in 2018. The average sold price for attached homes year to date bumped up 3.11 percent to $364,134, and the year-to-date median price topped out at a high of $301,500.
To get those higher prices, sellers had their homes on the market a little longer before accepting an offer. Year to date, homes were taking an average 32 days to sell compared to 26 last year. The median days on market jumped from six at this point in each of the past four years, to 11 so far this year
There’s also been more negotiating. The close to list price ratio dropped to 99.35 percent year to date. At this point in the past four years, sellers were getting, on average more than asking price. Sellers still have control across the price ranges, but a little give and take makes buyers feel better.
Will it continue to rain this summer? The dramatic price increases over the past few years were blocking people from entering the real estate market. The market has been watered with new inventory, so will it bloom this summer or will prices begin to wilt? Let me know your thoughts. Weigh in on social media and use the hashtag #DMARStats.
~Jill Schafer, Chair of the DMAR Market Trends Committee and Denver real estate agent
DMAR Market Trends, June 2019
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