Based on our latest data, all signs are pointing to a seller’s market in Denver, Colorado. Compared to a year ago, inventory has dropped, the median number of days a home is staying on the market is under a month and the price per square foot is climbing, as are list prices in the Mile High City.
What does this mean? If you have a home in the Denver area and have been waiting for the right time to list, things are certainly looking up for you. For buyers looking to move into or up in the Denver market, you may not want to wait, as inventory is declining and prices are starting to creep up. Get yourself in the property hunt now so you don’t miss a good deal.
Read on to see the breakdown of these various factors and how today’s Denver market compares to March 2012.
Big Drops in Inventory
Currently, there are 1,443 properties active in Denver. This is a 2 percent increase from last month, when there was 1,470 properties active. However, compared to a year ago, when there were 1,989 properties available, the current inventory represents a 27 percent decrease. This decrease is notable, since this means supply is decreasing and there is going to be more competition for the properties that are on the market.
Brisk Sales Pace
Currently, the median number of days a property is on the market is about 26, which is the same for February 2013. Compared to a year ago, the median number of days was 49. Thus we have a 47 percent decrease in the median number of days a property is on the market. With this number coming in under a month, our “seller’s market” hairs start to stand up on the back of our necks.
Price Per Square Foot and List Prices are Climbing
The median price per square foot in Denver for March 2013 is $205, which is up 5 percent from February 2013. Compared to last year, when we saw prices at $187/square foot, this represents an 11 percent increase.
Similarly, we are seeing an overall increase in median list price. Currently, the median list price is $345,000. This is a 2 percent increase from last month and a 15 percent increase from March 2012, where the median list price was at $300,000. The housing market in Denver is making the news. The Denver Channel recently reported that home prices have now rebounded to 2007 levels.
Colorado Mortgage Rates
Current mortgage rates in Colorado are around 3.51 percent, which are consistent with the current national average. Compared to a year ago, where rates for a 30-year fixed were at 3.92 percent, mortgage rates are down.
The Wrap Up
We love number as a way to help inform decision making. Based upon our review of the current statistics for Denver, we are trending towards a seller’s market. Potential buyers should not be dissuaded though, as there are surely some good deals out there to be had.
