Metro Denver Market Update
March 23, 2023
What is happening in metro Denver’s real estate market these days??
Most real estate data you see lags at least a month, sometimes more. We endeavor to follow local activity weekly and by home price segment, so we can best inform and advise our clients on the market most relevant to their particular situation. We can dig in to information at the zip code level and look at whether it is heating up or cooling down; understand if multiple offers or price drops are more likely; help you decide when the best time is to list, to buy?
Below are graphs of weekly data trends for a few stats we track for the greater Denver Metro area. If you like what you see below, and want to know what it means for your localized situation, reach out to us. We love to dig in!
What this tells us?
- Months of Inventory: For the past month, we have been in a very low housing inventory environment, hovering around .8 months of inventory, which means that within just under a month, we’d be likely to sell through all homes currently available for sale.
- Average Showings/Week: This is the average number of showings an active home can expect to get per week. If a seller is getting less than this/week, they may want to consider if they’re priced correctly. It has been around 4/week for the past 5 weeks, but took a slight dip this last week.
- Average Showings/Contract: this is the average number of showings before an active home can expect to get an offer. This tells us that buyers are being picky. They are seeing multiple homes before they decide and they are jumping on homes that are in move-in condition.
- Median Days on Market: for homes that went under contract last week, this is the median number of days they were actively listed for sale. You can see that it has varied slightly from over 1.5 weeks to just about 1 week.
- For homes priced well and in show-ready condition, in this low-inventory environment, they can expect to get at least the average number of showings a week in order to hit the threshold of total showings to expect a contract to go pending near the median days on market number.
What this tells us?
- Back in 2016-2019, before the unprecedented pandemic housing market, metro Denver had a more balanced housing market, although still slightly tilted toward sellers. Back then, a homeowner had around a 65% chance receive a contract for their home from a buyer within 30 days of going active. During 2020-2022, that average jumped even higher with most going under contract within a few days. It felt like 64% of homes went under contract within the first weekend! But don’t quote us on that… , You can see in the chart above, that we are right around 65% chance currently, but it has declined ever so slightly over the last couple weeks. We will watch to see if that trend continues.
- Hand in hand with this is the % of balance we see in the market. Being around 14% of a balanced market for the last 5 weeks illustrates that the market is still very compressed with more buyers than homes available, resulting in a market giving sellers the advantage. That said, this can look very differently zip code to zip code and vary by housing pocket.
- A few months ago, more than 50% of sellers made price reductions before a buyer submitted an acceptable offer. Over the past 5 weeks, we’ve seen this % continually decrease from 31.2% the week ending 2/21 to only 25% for the most recent week ending 3/21. The size of price drops sellers are making is also decreasing, and is currently under 5% on average.
DATA SOURCE: Megan Aller of First American Title's weekly update, find her on Instagram @agirlandhergraphs
Categories
Recent Posts
GET MORE INFORMATION
J2 Home Team
Broker Associate | License ID: 100073981
Broker Associate License ID: 100073981