Denver Buyer Demand is Crazy!
Looking to buyer under $300,000? GOOD LUCK! Homes are being bid up by 10% to over 15% above listing price. Dangerous territory for the buyer for sure. What happens if interest rates tick up? Inventory Loosens Up? Economy slows a bit? Oil jumps back up and we are paying $3.50+ per gallon? If any one of those things occurs the market will slow considerably and prices will be unable to keep up with the 20% annual appreciation. It’s absurd to think it can!
Strong demand for Denver homes for sale during the month of February pushed inventory levels to record lows, according to REcolorado, Colorado’s largest MLS and the provider of
REcolorado.com. Released today, REcolorado’s February 2016 report includes data from REcolorado’s 18,000 members who operate throughout the greater Denver Metro and surrounding area.
After an uptick in January, inventory of available homes for sale in the Denver Metro and surrounding area dipped despite a strong influx of new listings coming on the market. The month ended with 4,968 listings of homes for sale, six percent lower than last month and two percent lower than February 2015. During February, sellers added 4,639 new listings of homes for sale, an increase of 12 percent as compared to last month and two percent more than last year.
“The Denver area housing market is off to a solid start, with high activity levels that indicate the spring home buying and selling season has begun,” said Kirby Slunaker, president and CEO of REcolorado. “Demand is strong, especially for homes that are moderately-priced homes, where we are seeing inventory absorbed almost as fast is it comes on the market.”
In February, the supply of inventory in the greater Denver Metro area decreased to approximately 7 weeks, which means at the current sales rate, it would take just 7 weeks to sell all listed homes.
Home sales held strong in February despite low inventory levels. During the month, 2,957 homes sold in the Denver Metro and surrounding area, two percent more than last month and 9 percent lower than February 2015. Additionally, 5,295 homes went under contract, a 15 percent increase over last month and a two percent increase as compared to last year. Homes under contract is a forward-looking indicator of home sales, based on contract signings.
With over 50 percent of total sales in February, the most sales activity was seen in the $150,000 to $350,000 price ranges. Homes for sale in this price range also spent the least amount of time on the market. Overall, the average days a home spent on the market in February was 36 days.
Home values held steady in February with average sales price at $371,996, flat month over month, but up eight percent as compared to last year.