Denver Real Estate Market Improves Slightly
Under contract sales increased for single-family homes increased 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.
|May 07||Prior Month|
|Single Family (Res + Cond)|
|Avg Sold Price||$288,905||-1.40||0.55|
|Avg Sold Price||$318,904||-1.12||1.16|
|Avg Sold Price||$183,896||0.74||-3.21|