Denver Market Update: Inventory Down, but Prices Remain Up

It’s time for another Denver market update. The winter/holiday season is historically very slow for real estate and we generally see a slight dip in home prices. So what does this season hold for Denver?

Let’s take a look at the Denver market as of November 30, 2016.

Number of New Listings – 967 in November 2016, down from 919 in November 2015.
Number of Sales – 1,117 in November 2016, up from 939 in November 2015.
Average List Price – $450,282 in November 2016, up from $400,580 in November 2015.
Average Sale Price – $437,254 in November 2016, up from $397,253 in November 2015. That’s a 10.8% increase!
Average Days on Market – 40 in November 2016, up from 37 in November 2015.

Data from REColorado.com for the time frame of November 1, 2015 to November 30, 2016.

So what does this mean?

The numbers show the expected drop in inventory, but not a drop in price. In fact, Denver home prices have increased 10.8% since this time last year and 3.9% since October 2016. We are seeing a continued demand for homes in the area, which Denver has seen for over 4 years now.

According to Standard and Poor’s CoreLogic Case-Shiller reports, the national home price index is finally above it’s peak in July 2006. Although many cities haven’t made it back to their peak, Denver, along with Seattle and Portland, have well surpassed the 2006 price index.

Although home prices continue to rise during the slow season, experts anticipate a high plateau starting in 2017. A high plateau means prices will remain high but will level off because they have reached the peak local incomes can support.

The holiday season can be an excellent time to buy because sellers are often highly motivated. If you are ready to start looking, reach out today and let’s get started!