Denver MLS Sales

Denver Real Estate Market Improves Slightly

The Denver real estate market continues to “level-off” according to statistics just released by Metrolist, the local reporting multi-list reporting agency.

Under contract sales increased for single-family homes by about 5% from the previous month. However, sales were still down 1.66% from the year ago period. That suggests that the market has consolidated much of previous losses.

One important statistic to consider is not reported. It is absorption. Absorption is

the number of months it would take, at current sales levels, to sell all the homes currently on the market. Professional sellers such as relocation companies and lenders rely on absorption to determine the true condition of the real estate market.

Interestingly, absorption has continued to improve all this year in Denver’s market. Just single-family homes had 4.2 months of inventory (available homes vs. those “under contract” for sale) in May. January absorption was over 5 months of inventory.

Condominiums always have less absorption in this market because it takes longer to sell condos than single-family homes here. The absorption rate for condos was 5.8 months in May. Absorption rate began this year at 7 months of inventory. So, condo sellers are finding slightly better sales conditions too.

An ideal, “healthy” market would have 3 months of inventory. Denver MLS keeps statistics on local market activity.