September Market Update: Denver Metro Area
A full September market update for the Denver metropolitan area.
Today I want to discuss what we saw in September across the 11 counties that make up Denver’s metropolitan area.
First, the number of active properties available at the end of the month was 7,683, representing an increase of 11% month on month and an increase of almost 94% year on year. Meanwhile, the number of closed homes was at 4,113, representing a decrease month on month of just over 8% and a decrease of almost 28% year on year.
"Properties are taking longer to sell."
Furthermore, the average home price was $671,024. Interestingly enough, that represents an increase month on month of 2.2% and an annualized appreciation of 8.4%. So what does this mean?
Inventory is still increasing and we expect that to continue, but actually, home values are up both monthly and annually. In August, we saw the monthly value decrease by a figure of 4.5% with an annualized appreciation of 6.8%. Those numbers respectively were a 2.2% increase in value and an 8.4% increase in value year on year in September. Also, properties are taking longer to sell. In August, it took 19 days, while days on market were 26 days in September.
A few tidbits: Denver is second only to Boise in price reductions, with 58% of the active inventory experiencing price drops. The big Wall Street bank, Open Door, lost money on 42% of their re-sales, showing they’re along similar lines to Zillow. Moving along, the average active inventory in September is 15,663 historically, versus this month, which is 7,683. Finally, the average change between August and September in active inventory was -0.4%. But as we talked about, we saw an increase of almost 11% in that active inventory this year.
As always, call or email us with any real estate questions. We look forward to hearing from you!