The Apparent Slow Down, By The Numbers
The Denver real estate market expects to see continued winter slow down in December, especially with the holidays playing into non-real estate distractions. The number of sold homes are down and days on market are up - does this mean that Denver will see a real estate slow down? This month’s numbers certainly indicate the holiday season, with a slowing in sold homes (-13%), as compared to December of last year, that exceeds the decrease in active listings (-10%).
...But The Numbers are Skewed
However, consider single family homes as vs. attached homes. Since October, we’ve noticed new-build luxury condo numbers skewing the rest of the market data. This was just as true in December.
Condo inventory is up by 4% since last year, while detached home inventory is down by 14%. Yes, our listing shortage continues as Kelly Kozlowski mentioned in our Market Report video, “Buyers can expect a continued inventory shortage.” But, the sold home decrease makes much more sense with this new piece of information - if listings are down, the amount of sold homes should (and did) follow suit.
Condos are clearly not suffering from the listing shortage that the rest of the market is seeing. With inventory up, bolstered by fancy new builds, but sold homes in the condo market down, the overall residential market data is skewed…
What's Really Going On?
Denver’s listing shortage is - most impactfully - creating problems for those seeking affordable and starter homes. Condo homes became all the rage in Denver, during recent years, due to the affordability not often found in single family homes. The new influx of luxury new build condos does nothing to aid this problem, adding inventory to the market and (overall) sitting there without being purchased.
In fact, average days on market for attached homes increased by 54% since last year while days on market for detached homes decreased by 9% since last December! Overall, the Denver real estate market continues its strong trajectory, barring the struggles that luxury condos on the market are facing. Exponential home appreciation may be waning, but the Denver Real Estate market seems healthy; only time will tell, but we see no real estate slow down on the Denver horizon.