Is the Denver Real Estate Market Improving for Buyers?
Real estate agents everywhere are breathing a cautious sigh of relief. The market seems to be getting better for our buyers, yet remaining strong for our sellers. Thank goodness.
April was a great month for the market in Denver. Inside Real Estate News reports that there was an average of 235 homes and condos that came on the market EACH DAY last month. Every week it seems that a ton of homes come on the market Wednesday night, Thursday, and Friday, and then not as many the rest of the week. This should give you an idea of just how many homes we saw come on the market during those times!
In total, 7,059 homes came on the market in April, which is 40% higher than the number of unsold homes in inventory. Those numbers may seem super high, but that’s only because we’re used to such low numbers. In fact, this was the lowest inventory in April for any April on record. April 2005 saw about 34,000 homes on the market. About 6,000 homes probably came onto the market and inventory stayed very high, around that 34,000 mark. Turns out, people didn’t really keep track of this data back then because they didn’t see a reason to. Seems pretty awesome, right? Imagine not having to get into a bidding war, or go above asking price every time you found the home of your dreams.
Kentwood Real Estate’s own Peter Niederman, CEO, was quoted in this article about the low amount of inventory. He talks about how unprecedented this market is, and how quickly transactions are taking place these days. Sales are overtaking inventory and that’s making the statistics look skewed, which is why we’re now comparing numbers to times like April 2005 in approximates. This market really is unprecedented!
What’s most amazing is how quickly this inventory problem is driving up the price. Anyone who has ever taken Economics 101 is now saying “DUH! Supply and demand!”, and I’m not disagreeing! Last month was the first time the average hit above $400,000; Last year the average home price was about $360,000. These days, it’s a brutal race to the finish if you’re looking for a home under $350,000. The high stakes market gets even higher the lower you go in price points. Try to get a condo in Capitol Hill for around $180,000 and you’ll find yourself competing with 20 other offers.
Long story short, the real estate market IS getting easier for buyers and sellers, although the numbers are not as favorable as we’ve seen in the past. It seems that buyers actually are finding the homes they want and they are closing, but maybe at a higher price than they originally wanted to pay. Maybe if Denver wasn’t the coolest place to be right now this wouldn’t be an issue. But it is, so here we are, Denver. Keep an eye on our blog to get updates on the market, as well as Kentwood’s homepage, which gives market updates every 15 minutes.