The Denver Metro Real Estate Market closed the year with a continuation of the ongoing decline. The inventory of homes for sale continues to remain historically low. However, the number of homes for sale has increased significantly in the past six months from record lows while the number of sales has decreased consistently over the past six months with a continued drop in sales in December. The number of price reductions in the MLS continued at a more moderate rate in December. Average Days on Market continued to increase in December. On a positive note, mortgage interest rates declined during the month to the 4.5% range due to market volatility. Some of the market moderation can certainly be attributed to normal seasonal factors. However, the significant year over year decline in sales continues to suggest the market is shifting to a more balanced market. The continued poor performance of the market in December is certainly a concern for the short term. January will be an important month as the market typically improves on a seasonal basis. Many sellers list their homes for sale after the holidays. If the inventory of homes for sale increases, as it typically does in January, without a corresponding increase in sales activity it will be critical for motivated home sellers to stay ahead of the trend with appropriate pricing and aggressive home marketing. The relatively low inventory of homes for sale will continue to provide some support for the market. The first few months of 2019 will be an strong indication if the market shift is just a short-term adjustment or a long-term shift in the market. In any case it is important for sellers to realistically evaluate market conditions and stay ahead of the trend.
Below is a Denver real estate market snapshot based on December 2018 Statistics from DMAR Market Trends
This information is for the Denver Metro real estate market. Real estate market activity varies from neighborhood to neighborhood. If you would like an instant real estate activity report for your neighborhood click Market Report or call Tom Gross for more information.
Questions? Let’s talk – call or text me, Tom Gross, at (303-591-2116) to discuss your questions, plans or the current value of your home. If a move is in your future now is an excellent time to discuss home preparations and a timeline for your move.