Here are our October 2017 Denver Metro market report. 2017 has been a very different year, the summer was not as crazy with the mega bidding wars and offers in days like we have seen in years past. With that being said we are all watching the home statistics in Denver very closely. The October statistics are as follows…
· Home sales in October 2017 compared to this time last year are down 8%
· The average sold price for a single-family home this year is up 12%
· New listings are down 3%
· We currently have 5 weeks of inventory compared to 7 weeks this time last year
· Days on market are up 2 days over last year
So, what can we take from these numbers? I feel like we can see the market stabilizing a little as we have been stating over the last six months. Home sales are down which is normal when we have less inventory and less new listings. In times past I feel like we have had a supply and demand issue. Not enough homes for the number of buyers wanting to buy. Now from what I can tell from sellers is they are not seeing the numbers that they have seen in the past so they are choosing to wait to sell. We see that the inventory is down but the days on market are actually up. Homes are taking longer to sell from what we have seen in the past and therefore we see sellers actually giving in a little when it comes to prices and inspection items. In years past many homes in the Denver Metro market, they would sell for over asking and with many competing offers. Because of this, the sellers were not very willing to do much when it came to repairs. They knew that they did not have to give in much at all. Another buyer would buy it with no repairs just to get the house. Now that the huge bidding wars are mostly gone, we see this becoming more of a manageable market for the buyers. Sellers are still happy in the Denver market with prices up for another year of over 10% increase, but buyers are able to get in as well.
With all of this being said we are all watching the market very closely to see what the market is going to look like in the winter and more importantly what the market will look like in 2018. I would personally look for the 10-15% increases that we have seen for the past few years to actually slow down. People are starting to feel a slow down which I strongly believe will level those numbers to a more normal market of maybe 5%, but we will only know when we get into the 2018 year.