With increasingly more opinions on Denver’s housing market there have been varying reports of exactly where we stand. Has Denver finally shifted towards a buyer’s market, or is the market getting even tougher on home buyers?
For the housing market as a whole, the numbers present a not-quite-as-strong-but-still-very-strong seller’s market. But, it’s not quite that simple, as agent Megan Aller stated in her recent Westword interview. Within the Denver market, we’re seeing the luxury market soften significantly, while the median-priced homebuyer almost always has to compete with multiple offers.
Days on the Market
2019 went out just as it started with regards to days on market, averaging about 37 days on market in Q1 and Q4 of 2019. There were fewer days on market during the busy spring and summer season as expected.
Notable here is that even with slightly less inventory than 2018Q4, 2019Q4 homes took longer on average to sell. This is a nod to our theme this year, the market is not quite as competitive for buyers, but this change is marginal.
Inventory in Q4 was lower than in 2018, with about 200 less homes in October, November, and December on average. This is largely due to new homes becoming available towards the end of last year and this summer. Denver reached its peak this September with 2,605 units on the market! As a result, sales last quarter were higher than last year. Since September of 2019 you can see inventory on a downward slope.
Unless you are literally living under a rock you have surely heard that interest rates were down in 2019. The below graphs show just how sharp of a dive rates took over the year. In Q4 of 2019, the interest rate is finally inching up.
These are still the lowest rates in more than 2 years. What this means for the average homebuyer is the rise in median home prices over the past year is almost entirely offset by the decreased rate of borrowing.
Median Sales Price
In 2019, Denver continued its trend of increasing home prices, but at a decreasing rate. In the final quarter of 2019 home values decreased by around $12,000 on average, while still remaining higher than previous years. Only attached homes decreased in value overall during both Q4 and 2019 as a whole, which is due to a surplus of luxury condos in downtown Denver. The slowing of price increases, coupled with the previously mentioned low interest rates worked in tandem to soften our housing market in Denver, last year, if only slightly.
Some Denverites may have wanted to see bigger changes this past year, most can be happy that we live in a housing market that’s a little friendlier to newcomers while still providing a robust investment for current owners. We’re excited for you to follow along with us to see what the new decade brings for our community.