All data taken from REColorado on December 15, 2017 for the 8 county Denver Metro Area.
2017 Real Estate in Denver, Colorado: Continuing to Out-Perform Year over Year
- Average price of both single-family homes and condominium homes year over year in November was $429,498 vs. $398,758 in 2016. We are starting to see prices flattening as there was a meteoric rise of 7.7% increase year over year, which is somewhat unsustainable after the 50%+ the previous 4 years.
- Inventory for December 2017 decreased 10.5% over December 2016. This shows that Denver homeowners are not putting their homes on the market right now. From September 13 to December 15, 2017, inventory decreased 41.28% This is a significant decrease in inventory, meaning that demand for homes should remain constant through the next several months and into the first quarter of 2018.
- The number of homes closed in November 2017 was 3,913 compared to 4,373 in November 2016, or a 10.5% decrease in closings. This signifies that the buyer pool has started to shrink and 2017 is within 1% of 2016 total sales.
- Days on the market is 24 days, which is about the same as 12 months earlier. However, the number of homes placed under contract in November 2017 is also slightly down over 2016. This means December and January closings will be less than the previous years.
- The median price of a single-family home in Denver has risen 6.6% year over year to $375,000. This is an unsustainable number and prices will slow down moving forward.
The anticipated slowdown of housing sales in the 4th quarter has not happened the way it typically would, and the market is now outperforming 2016 numbers with a very strong finish to the year. With the warm weather in Denver in November and December, and the potential of very slight increases in mortgage interest rates for the early part of 2018, the real estate market is liable to continue with the positive results exhibited in 2017. Moreover, the availability of lending options for people is growing, and although we do not see money getting cheaper, we most certainly will see more financing options for self-employed and entrepreneurs in 2018 for obtaining financing for residential real estate.
As we finish the 2017 calendar year, we wish you and your families a very Happy Holidays and prosperous new year. Our 2017 Year End Review will be out approximately January 25, 2018.