Denver Market for May 2014: Up, Down, Up, Down and Good
June 20, 2014 | Market Trends
The metro Denver real estate market is a story of ups and downs. Both the ups and the downs are good, for the most part.
Prices are up. The average price of single-family homes closed in May 2014 was $370,918 and the 12-month average (June 2013 to May 2014) was $341,464, an increase of 10.72% and 8.63% respectively over the same time periods a year earlier.
The price trends for multi-family properties show the same pattern. The average sale price was $230,160 in May 2014 versus $202,153 in May 2013. This is a 13.86% increase. The average for the June 2013 to May 2014 time frame was $208,335 and that is 10.92% higher than the same 12-month period a year earlier.
The inventory of homes for sale at the end of May 2014 stood at 8,390 properties, a 2.14% increase over the end of May in 2013. It remains true, however, that inventory is abnormally low for this time of year. We typically had 16,000 to 22,000 homes on the market at the end of May each year throughout the first decade of the 21st century. Even in the very strong seller markets of the late 1990s, we’d have over 11,000 to 14,000 homes on the market as the month of May came to a close.
Homes are on the market for a shorter period of time than a year ago. The average number of days on market is in the high 40s right now as opposed to the mid-60s a year ago. This is the length of time it takes to get a home under contract from the first day it goes on the market.
We all hear the stories of homes going under contract in just 2 or 3 days for more than asking price with multiple offers. However, this does not happen in every part of town or in every price range. This is why it is still taking 45 to 50 days on average to get under contract when selling a house.
The number of homes sold so far this year is also down a bit. We’ve had 20,335 single-family and multi-family homes sold through the MLS from January 1, 2014 through May 31, 2014. This is 5.11% fewer homes sold through the same time period in 2013.
Current market conditions are especially favorable for owners that need to sell without buying a replacement property (those moving out of town or investors disposing of rental homes).
The low inventory makes it a challenging time for both first time buyers and for people that need to sell one property and replace it with another — and for real estate agents helping such people. Never fear, however! We’ve got great strategies for helping both kinds of buyers be successful in the current market conditions.
In addition, we’ve got detailed stats on the market conditions in every zip code in metro Denver. Contact your CHR agent for a report on price trends, supply and demand patterns and much more in your particular segment of the local real estate market.
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