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Denver Residential Real Estate Market Sees Seven-Year Low

March 20, 2019

When you work with Elevation Group to buy or sell your Denver area home, you won’t just be confident you’ll find the ideal picture window, study, pantry or child’s bedroom you’ve been after. You can also align your sale or purchase with us with the confidence of knowing that our team prides itself in the ability to stay up to date on all the latest Denver real estate trends —and utilizes that knowledge to remain a critical asset for each of our clients. With that said, 2019 has started off as a great year to buy a home in greater-Denver, thanks to both a surge in available homes and condominiums, and a buyer-friendly market that hasn’t been seen in nearly a decade.

According to a report released in the first week of March, 2019, the median price of for sale homes fell just over two percent from February of this year to an average price of $430,100. The Denver Metro Association of Realtors indicates that the drop marks the first price drop for single family homes in the greater-Denver metro area since 2012.

What's causing this precipitous drop? It starts with the fact that it's a buyer's market. Homes across the greater-Denver residential real estate market, from those in Holly Hills and Goldsmith to Hale and University Park, are widely available either as new builds or modernized renovations. As such, buyers are gaining more control of the local real estate market, much to the chagrin of sellers. 

In April of 2018, the average cost of a single-family home in the greater-Denver area peaked at $455,000. Last months data is indicative of a nearly six percent decline from that high. The trend is similar for residential condominiums, who have seen an approximate drop of three percent in average sale since May of 2018. 

Another factor that occasionally impacts the Denver housing market is weather. And despite the abnormally disruptive cold and snow experienced by the region this winter, weather isn't believed to be a factor this time. In fact, recent sales data indicates that residential sales of both homes and condos roles nearly five percent from January to February. Another indicator that sales aren't drooping is the fact that an average residential home listing in Denver still only spends an average of 39 days on the market thus far in 2019.

Some strategists believe that only a drop in overall housing prices can regain ground for the region's residential real estate brokers, particularly as the number of available properties remains steady.

Looking to align yourself with a realtor in Denver who will always be in your corner? Contact the Elevation Realty Group team today to set up a free consultation where we can confidently and confidentially discuss your residential or commercial business needs.