"Much like the KC Royals World Series run
came to end last week, so too did the frenzied summer 'sellers’ market'.
Just a few short months ago, we witnessed multiple offer situations and
'Days on Market' seemed like hours on the market and sales prices were
driven upwards. The mid-year buying frenzy appears to be over as 'Days on
Market' (DOM) increasing while the four other indicators: 'Closed Price'
to 'List Price' ratio, 'New Listings', 'Median Sales Price' and 'Closed
Sales Volume' all decreased in October.
The low inventory of homes available for
sale continues todecline with seasonality impacting overall transactions.
The month-end inventory of 6,748 homes is getting closer to the record low
of 6,341 homes in March 2014. In the $100k - $199k the 'Market Trends
Committee' found very low inventory with only 260 units. Of that, only 75%
are individually owned. Of that 75% only 48% are located within the C-470
beltway. Compared to the $200k - $299k price range, 83% are individually
owned and 61% are within the C-470 beltway. In a nutshell: there are fewer
quality listings in the lower price range and there are less of them
closer to the city center.
Overall, the news is not all bad as we point
out strengths in our market with a 'Year-to-Date' (YTD) 'Average Sold
Price' of $324,362 and a 'Closed Dollar Volume' of $14.8 Billion.
Seasonality will likely impact transactions as we enter the holidays, but
demand remains strong for Millennials looking to use the off-season to
trade their high rent prices to purchase in the Denver area as well as
buyers who will continue to look for the home of their dreams."
- Anthony Rael, Chairman - Denver Metro
Association of REALTORS Market Trends Committee