The number of homes for sale has declined for the winter months. It is common to have 7,000 to 8,000 homes for sale from December through February. Buyer and seller confidence is still high and we are seeing a lot of interest in the market.
The average time a house is for sale before accepting an offer is currently 36 days.
We are seeing seller’s negotiate lower right now than any other time this year. The average sales price is 97% of the original asking price.
Over the last five years home values have appreciated very close to 9% each year. The average price of a home in Denver Metro is $426,517.
Since 2012 home values in Denver Metro have appreciated very close to 9% each year. The national forecast is 5% so we are doing great in Colorado.
The reason behind our high appreciation is simply supply and demand. Last year 91,000 people moved to Colorado and most of them to the front range. We have roughly 7,000 people moving to the area each month and only 6,500 – 11,000 homes for sale each month throughout the year. Homebuilders are building as fast as they can however most construction workers left the industry during the recession and we don’t have enough workers to fill the need. New homes are taking 9-10 months to build right now.
Looking forward most economists I talk to say this trend will continue for the foreseeable future. Metrostudy is the only one I have met that is forecasting salaries will no longer be able to meet the price of homes in Denver Metro late in 2020 and we will see a slow down. As we approach that time I will keep you updated. Markets like Phoenix and Las Vegas were in a similar situation as us in 2011. The home values went up quickly then leveled off and continue to appreciate between 6-7% each year.
Anytime you have a question about real estate or what’s going on in Denver Metro give me a call at 303-501-2810 or send me an email at firstname.lastname@example.org. It would be an honor to help you.