Last month, the Denver real estate market saw a new record low in Denver’s housing inventory. The number of average and median sale prices, new and active listings were all down.
However, when it comes to the year to date, the 2017 market is still ahead of last year’s numbers, and this year’s total numbers will break the 2016 record of number of homes sold in the Denver area.
According to the DMAR Market Trends Committee, a 4.18% drop in the number of sold homes is expected month over month. However, 2017 numbers were still ahead of 2016, and the year will end with a leading number of home sales and closings.
The bottom line in the reasoning behind these numbers is the “tight inventory” compared to the “strong housing demand.” The main culprit behind this phenomenon? Weather.
Weather plays a tremendous factor, as history has outlined the fact that more people buy homes when it is warm rather than when temperatures drop. Additionally, the amount of houses available to purchase, along with new construction, drops as colder weather approaches. November 2017 saw a record low in inventory, causing numbers all around to drop.
A true “present” to Denver real estate would be a spike in the amount of homes that homebuilders produce, ensuring there is always enough supply for the market demands.
On a bright note, when it comes to condos and luxury single family homes, median days on the market is down 16.8%, a positive trend that the city hopes to see continue as we enter 2018. October 2017 saw a 40.8% increase in sales in this sphere over September.