A combination of beautiful scenery, a thriving arts and culture scene, and skyrocketing economy have turned Denver into one of the hottest places to move to in the entire country. Anyone who moves to the Mile High City needs a place to live, but the real estate market is quickly growing thin as the population increases. November of 2017 saw a low point in home sales due to a shortage of available real estate according to a recent market report.
The trend of seasonal dwindling real estate in Denver is nothing new. The number of Denver homes for sale at the end of November traditionally drops an average of 8.8% since 1985, but the numbers for 2017 are much worse. November 2017 saw a drop-off of 18.7% to only 5,131 available properties, a new low for the monthly transition. To give an idea how few homes 5,131 is for Denver – the average number of properties available from October to November since 1985 averaged over 15,000 homes. The low number of available properties is putting a crush on real estate professionals, developers, and prospective home buyers.
“History tells us inventory will continue to decrease until sometime around February. We may be looking at more record lows,” Steve Danyliw, chairman of the association’s market trends committee, commented in the recent statistical report.
The shortage of properties is hitting every type of real estate. Both home and condominium sales dropped off 13.5% from October to November 2017 and 8.1% from the October to November of 2016. Amazingly Denver real estate sales are expected to beat their 2016 averages overall despite the late-year availability. The fluctuating numbers put the median price for a Denver home at $405,000 for November, a 1.7% drop from October. Despite the drop-in price from October to November, overall median home prices have climbed 8% overall in 2017. The median price for a condo fell 1.1% in the monthly transition but has risen almost 10% for the year.
Do you think Denver real estate has reached its high or is the bubble still building? Do you expect the real estate market to crash in Denver? Has your home value skyrocketed? Tell us what you think about the meteoric rise of Denver real estate in the comments section.