Denver metro real estate market ends 2018 at record-high, reaching an average of $473,539 and median of $409,900 for single-family and condos, up 8.34% and 7.87% year over year respectively. However, in 2018, compared to 2017, the number of home sold were down 5.52% while the inventory was up 44.71% by year-end. Even though it may feel like there is a major market shift, home sellers in Metro Denver are still in control in all housing price ranges, except homes priced over $1 million where homebuyers and seller are on equal footing.
Looking deeper into the numbers for the Denver metro real estate market, for the entire residential market, December ended with 5,577 active homes on the market, down 25.94% from the month prior, while days on the market increased 22% from 32 to 39. The number of homes sold dropped to 3,396, down 17.79% from November and down 22.96% year over year. The average price for a single family home in 2018 was $522,839, up 8.05% year over year while the average price of a condo increased 9.82%, ending 2018 at $351,677. Notable, sales volume for the entire Denver, real estate market, hit an all-time high in 2018 at $26.5 billion, up 2.36% compared to the year prior and up nearly 50% in 4 years.
While the average sold price peaked mid-year, months of supply for single family homes priced under $1 million still had less than three months inventory, showing sellers still had control in the bulk of the market. Anything under five months is considered a seller’s market and over six months is a buyer’s market.
Home prices continue to rise in large part because people continue to move to Denver area. According to the US Census Bureau, 80,000 people moved to Colorado from mid-2017 to mid-2018 and Millennials are entering into the real estate scene as first-time homebuyers are adding to the demand. The good news is that The National Association of Realtors forecast for 2019, estimates home prices in Denver to grow 6.8% from 2018.
For the luxury segment (properties sold for $1 million or greater), 2,156 homes sold, up 18.14% compared to 2017. The closed dollar volume in 2018 in the luxury segment was a record-breaking $3.29 billion, up 18.10% compared to 2017.