The Metro Denver Association of Realtors has released figures showing the 2017 with another record-setting year in the Denver real estate market.
What it doesn’t show is that the lack of number of homes for sale actually inhibited the number of sales. By the end of 2017, the number of listings was at an all-time record low of. The number of sales in December actually exceeded the number of listings. Still, not all listings sold. In fact, the average home lasted 48 days on the market
Yes, demand for homes in December declined. This is normal and seasonal. However, the low amount of inventory for sale kept some buyers from finding just the right home. Therefore, the number of home sales might have actually been larger in a market with more inventory.
2018 Denver Real Estate Market Forecast
Most of my sellers want to know when is the best time to list the property. Based on last year’s sales, it would appear that the best time to list would be in February or March. Why? Because, more homes actually closed in April May and June than any other months of the year. Remember, the average home the goes under contract does not close until 45–60 days later. So, the highest number of under contract sales likely occurred in the April–May time-frame. At least, that was true last year.
Fall and winter has historically been a great time for buyers to get the bright prices. The average home sale price is the lowest in the fall and winter seasons. When does winter end? That’s a great question. It varies from year to year. Last year it appeared to end inFebruary. Some years, the market picked-up by the end of January. In other years, slower sales persisted all the way through to the end of March.
When Might 2018 Denver Real Estate Prices Peak?
Historically, about half of the Denver home sales occur between March and June. That’s why many sellers prefer to wait until the busy spring selling season in the Denver real estate market before deciding to sell. They know that they are more likely to get the highest price in the shortest amount of time. That’s also when multiple offers are more likely to drive sales prices above the listed prices.
Of course, there is no guarantee that the spring selling season in 2018 will mirror what happened in 2017. But most sellers are counting on that. The proof of the pudding will be the amount of demand for homes that occurs beginning in late February into March and April.
Employment Drives Housing Demand
Right now, there is no indication that demand for Denver homes will decrease. If anything, it’s likely to increase going into the fall. More companies are moving into the Denver area. British Petroleum, for example, is moving up to 200 jobs in two the lower Highlands/rhino neighborhoods. In addition, Google is moving a major campus to Boulder. And, Amazon is building a regional warehouse in Aurora.
Other companies are moving into the Denver area as well. At the same time, new home building is limited historically. Fewer homes are being built now than in previous years. So, new homes are able to charge a premium compared to resale homes. Also, the prices of resale homes keep climbing.
So, there’s no guarantee that the 2018 Denver real estate market will be able to repeat the historically phenomenal performance of 2017. But there’s no indication on the horizon to suggest that it won’t. As we’ve been saying since 2011, there’s no better time to buy a home in Denver than now. Unless it was yesterday. It doesn’t look like that will change soon.