Realtor Beth Baker Owens Evaluates the Denver Real Estate Market
Realtor Beth Baker Owens says the Denver Metro residential real estate market is hearty and strong in 2020.
2019 had a slight increase in inventory and a slower rate of increase in home prices. The average 2019 sales price went up +3% for homes and +4% for condos over 2018 prices. Yet a few neighborhoods had higher increases in equity. Each neighborhood and market segment varies. From Downtown Denver out to the suburbs east in Aurora, south to Parker and Highlands Ranch, and west to Littleton and Lakewood, our residential home market is strong.
What is driving our market to stay strong, despite increasing prices? Interest rates are low again, making homes more affordable. Denver and Colorado's Front Range have continued population growth through net migration into the area and a strong economy where unemployment is low and average salaries are on the rise.
Beth explained, "Tight inventory continues to keep the market a seller's market, even as we have slightly more homes selling overall. We expect more homes to be active in the coming year." There is seasonality in how many homes sell, as warmer months tend to be the busy seasons. Volume decreases over the winter holidays, but activity remains brisk. Notice how the active line & sold line show supply meeting demand repeatedly.
Months of Inventory (MOI) is a tool for measuring how many months it would take for the inventory of homes on the market to sell. A lower number means homes sell faster. For the past four years MOI has been vigorous and fairly stable from 1.9-0.9 MOI. Seasonality slows home sales a bit in the fourth quarter as both inventory and demand decrease (allowing buyers to be more relaxed in making their decisions). Mid-summer also has a bit of a slowdown due to increased inventory. During the height of the Great Recession, it was a buyer's market. In 2006 MOI ranged from average 6.5 MOI to luxury homes having 48 MOI!
About Beth Baker Owens, Your Castle Real Estate
Beth Baker Owens is a Broker Associate with over twenty years of experience. As a Senior Real Estate Specialist, she has extra training in working with seniors. She has facilitated real estate transactions for hundreds of clients across the Colorado Front Range. Owens has been awarded the Denver Five Star Professional Award for Realtors several years. Your Castle Real Estate is located at 2755 S. Locust Street, Suite 150, Denver, CO 80222. For more information, please call (303) 550-2941, or visit https://HomesByBethOwens.com. You may reach her by email at BethBakerOwens@yourcastle.org.