There are so many more homes on the market this May compared to in years past. What impact is that having on local market conditions? And what’s up with interest rates being so low? Let’s take a look.
A plentiful supply of housing translated into another strong month for home sales throughout the Denver Metro area. With over 6,000 homes being sold in May, sales of single-family homes saw increases of 2% year over year...
...and 17% month over month.
That marks the fourth straight month of positive sales this year. Year to date, sales are just 0.2% lower than this time last year.
In May, contracts were put in place on well over 6,000 homes, up 10% from last year.
And, 5% higher than last month.
We did see a new highwater mark for home prices as the average sold price of a home moved past the half million dollar mark in May reaching an all-time high of over $503,000, an increase of 3% from last year...
...and a 2% increase compared to last month.
It’s good to still be seeing substantial gains for homeowners. Single-family detached homes sold for an average price of over $553,000, up 2.5% year over year.
While the price of condos/townhomes was up 6% from May 2018, at an average of nearly $379,000.
The amount of available homes was up in May. Year to date, new listings are up 8% compared to last year at this time.
The amount of active listings of homes for sale at the end of May was 38% higher than last year.
And, 8% higher than the end of last month.
The best way to see the effect of that much inventory on our marketplace is by understanding that at the current rate of absorption (consumption), if no new homes entered the market, it would take about six weeks for buyers to consume the current supply of available homes.
Six weeks of inventory is 1 week less than last month...
...and 1 week more than last year at this time.
In May, homes spent an average of 36 days on the market, 6 days less than last month.
But, 7 days more than this time last year.
As usual the May housing market saw the most activity in the $300 to $500,000 price ranges, representing 47% of all new listings...
...and 49% of sales.
At the end of the month, 35% of all active listings were priced between $300,000 and $500,000.
Homes in these ranges are in high demand, spending an average of only 25 days on the market.
Perhaps some of the absolute best news is that interest rates are back to near historical lows with the best qualifiers receiving rates below 4% for a 30-yr fixed mortgage! That’s great news for borrowers and home sellers alike and it’s contributing to the still vigorous activity our market is still enjoying.
If you’re thinking of buying a home, we. should. talk.
If you’re watching these videos, you’re staying current with all the latest local market trends so you know it’s a great time to take advantage of favorable market conditions as both buyers and sellers...but as always, we know everyone’s situation is unique.
Give us a call to discuss how the real estate market impacts you. We’d love to hear from you!
The Altitude Group
REALTOR® | MCNE
REALTOR® | CNE