Denver remains one of the fastest growing cities, ranking fifth in a 2018 WalletHub survey. With more people looking to reside in the Mile-High City, sellers have enjoyed the advantage in the local real estate market. However, certain factors are resulting in Denver turning the corner towards a more buyer-friendly market.
With the unofficial launch of the homebuying season in April, the frenetic pace sellers enjoyed is starting to slow. Denver’s real estate market now features a larger available inventory where homes are more affordable. Data from the Denver Metro Association of Realtors reveals that the city now has the most listings in five years, increasing by 36 percent (1,900 homes) over the same time in 2018.
The turnaround is welcome news for those currently looking to put their house on the market. Prior to the shift, they faced a quandary. Purchasing a new dwelling was not a problem. The larger challenges surrounded finding another home in Denver in a timely manner closely synchronized with the sale.
New home construction and more sellers are fueling the surge. But as the supply grows, demand has fallen. The number of sales dropped seven percent in April. This phenomenon is playing out not only in Denver but also across the country as buyers’ wages fail to keep up with price increases.
Denver’s status as the most expensive, non-coastal market in the country is also problematic for sellers. The average cost of a single-family home is more than a half-million dollars, based on additional data from the Denver Metro Association of Realtors. More “reasonably priced” houses priced in the $400,000 range are considered “fixer-uppers.”
Sellers should not be nervous just yet. The median time for a house to be sold is 12 days. While the timeline is still attractive to sellers, the number has doubled from six days.
Residential and commercial real estate markets are in a continuous state of flux. A skilled and knowledgeable attorney can provide the necessary insight that sellers, buyers, and investors need.