The real estate market is not enjoying the happiest of new year’s.
January did not improve the fortunes of home sellers in Denver as buyers failed to reach the number of available properties. Fewer buyers means fewer sales, lengthier listing times, and the potential for significantly reduced gains.
The Denver Metro Association of Realtors reported that single-family home sales in January fell 20.2 percent while condo sales dropped 27.9 percent. Combined, sales of those properties dropped 30.8 percent from the previous month. The market was not helped by the lack of volume, which decreased 14.8 percent from the previous year.
More Sellers Than Buyers
Buyers were not left wanting for options as the new year dawned. Single-family home sellers listed a combined 3,312 properties while 1,509 condos were put on the market, a significant increase from December’s 1,565 and 734 respectively.
Continued reductions in mortgage rates also failed to entice prospective homeowners. Last month saw available single-family homes and condos at 5,881, a 52 percent increase from last year. Listing times for single-family residences are averaging 43 days, six more than last year. Condo listings sit at 40-day list-times, an increase from 30 in 2018.
Median prices are also feeling the pinch of a lackluster seller’s market. However, few are ready to declare a buyer’s market, preferring the term, “balanced market.” The one exception involves buyers seeking homes valued at $1 million or more. That luxury market currently contains 7.65 months of inventory, significantly swinging the pendulum to buyers. Yet, those homeowners are not exactly taking the first offer that comes their way.
Many blame consumer fears and uncertainties stoked by the recent government shutdown coupled with stock market losses. With lawmakers coming together to re-open operations and keep them running for at least seven months, the happier 2019 for Denver’s real estate market may have to wait.