Moderation Trend Stabilizes
The market was stable in October which is good news for this time of year. Market statistics indicate a modest increase in closed sales compared to October 2018 and a modest increase in under contract (new sales) for single family homes compared to October 2018. It was reported that contract cancellations continued at a high-level indicating caution on the part of home buyers. This would help explain the divergence between increasing under contract and a modest increase in homes sold. The supply of homes remains historically low which will continue to support the market. A few highlights from October:
- Number of available listings for the month increased by 0.21% in a year over year comparison. Inventory of condos increase 15% in a year over year comparison.
- Number of Homes Sold declined 6.4% from September and increased 1.6% in a year over year comparison.
- Single Family Homes placed under contract (pending sale) increased 1.4% from September and increased 19% in a year over year comparison.
- Average Sold price increased 1.2% from September and increased 3.5% in a year over year comparison.
- Less than a two-month supply of homes for sale exists in our market (more than five months of inventory is considered a buyer’s market.)
- Average days on market (33) increased 10% in in a year over year comparison and remained unchanged from September.
- New construction activity continued at a healthy pace as builders push to take advantage of current market conditions (more available inventory – more buyer incentives)
- Mortgage rates settled in a range of 3.50% to 3.75%
- Underlying trend (rising # of homes for sale, declining # of sales, rising days on market) towards a more balanced market stabilized.
Bottom line, current market conditions are generally positive for most buyers and sellers. The underlying trend towards a more balanced market may have a greater market impact during the holiday season. However, favorable mortgage interest rates should help support the market through the end of the year. If a move is in your future, now is a great time to start the planning process. Market conditions vary from neighborhood to neighborhood. Contact me today for an update on the value of your home.
Below is a Denver real estate market snapshot based on October 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 contact us for more information.
Questions? Let’s talk – contact us anytime 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.