The Denver Metro Real Estate Market started the year with a continuation of the ongoing market adjustment. The inventory of homes for sale continues to remain historically low. However, the number of homes for sale has increased significantly in the past seven months from record lows while the number of sales has decreased consistently over the past seven months with a continued drop in sales in December. Average Days on Market continued to increase in January.
On a positive note, mortgage interest rates continued to decline during the month to the 4.25% range due to a shift in Federal Reserve policy. Some of the market weakness 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 weak performance of the market in January is certainly a concern for the short term.
February will be an important month as the market typically begins to improve on a seasonal basis. Many sellers list their homes for sale in February and March. If the inventory of homes for sale increases, as it typically does in February, 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 next few months will be a 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 January 2019 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.