Denver’s Housing Market Is a Battlefield
It’s purely by coincidence that we are emailing this market update on such a historic military day, the invasion of Normandy, and using the battlefield analogy. Read on to find out the dynamic forces that are driving more buyers to fight over fewer homes.
Central Denver’s home inventory in May continued to plummet to a new low; down 55% compared to May 2010, just 2-years ago! We are seeing a continued month-to-month decrease in inventory between March, April, and May. We checked the books for the past 20-years and found no other spring where inventory decreased as we headed into summer.
The ongoing effect of this historically low inventory was further compounded by a surge in demand — home sales were up 59% compared to last year in May and up 41% from just last month. In fact, the last time that we sold this many homes during any given month was June 2006!
Prices appear to be on the rise too. The average price for the previous three years for a home during the month of May is $423,000. This year the average May price is $460,000 (monthly averages fluctuate seasonally because of school calendars and weather conditions). Multiple-offer bidding wars and cash offers are today’s Denver real estate trend.
If you, or someone you know, is considering purchasing or selling a home, we would be honored to help you navigate the Denver real estate battlefield.