A rise in both home sales and home prices bolstered the Denver economy in 2017, but that surge soon leveled. Yet, a total of 57,788 sales of single-family homes and condos broke records during the year, showing a promising 8.7% increase since the previous year. The average home price in Denver for that year was $410,000, which was 7.9% higher than it had been in 2016.
Condo sales were even more impressive for 2017, rising a full 10% since the previous year with the average condo price going for $318,904. The median sale price for condos in Denver for 2017 rose by 12.15% with a $270,000 price.
The Total Volume of Real Estate Sales Continues to Rise
In 2017, the total sale volume for Denver was $25 billion, which shows another increase in a trend that has been going strong for several years. In 2011, that number was only at $9.9 billion, but, by 2014, Denver showed a total sales volume of $17.6 billion. Sales volume again rose to $20.3 billion in 2015 and to $22.2 billion in 2016.
The total sales volume primarily concerns the sale of existing homes, but also includes a portion of newly developed homes in the area. A low volume of homes on the market has been driving home prices up, which accounts for the steady increases. By the end of 2017, there were only 3,854 homes available on the market in a city of 3 million people.
In comparison, the average number of homes on the market in Denver between the years 1985 and 2016 was 13,702. The low number of listings concerns realtors, because it signifies a growing trend that homeowners are electing to stay in their current homes. In part, this may be because they fear not being able to find a new home to suit their tastes in such a sparse market.
Another reason that the inventory of homes is so low is that sellers typically find buyers, before their listing is made publicly available. These homes spend zero days on the market, bringing that count down lower than it is in reality. Additionally, homes are selling faster. In 2017, 1,880 homes were sold after only being on the market for one day.
As rising prices dominate the market, fewer buyers may be able to afford the homes. This, in turn, will likely drive home prices back down to more manageable prices and could possibly reverse the market trends. In that case, it will again be a buyer’s market in Denver.