By Dr Denver H. Bubble
The Denver Metro Association of Realtor stats are out for October and they have some mixed signals, but signs continue to point to a gradual bursting of the real estate bubble. For the first time in months, the amount of inventory is actually down 3% to 8,539. However, if we look at the year over year inventory statistics, inventory is up 35% which is a good sign for buyers. A key stat, sold homes, is down almost 4% month over month and almost 16% year over year. Sellers in the future will have to continue to drop their prices if they want to sell their homes.
Prices are meekly rising, the average selling price was up 3% month over month and 7% year over year to $471,321. The median selling price was flat month over month and up 5% year over year to $400,000. Average prices were up in the residential market 5% month over month and down in the condo market 2%.
Homes are sitting for long with the average home sitting on the market for 29 days up 7.4% month over month and year over year.
We are still not in a buyer's market yet, but we are getting close. Jill Schaffer, Chair of the DMAR Market Trends Committee, said, "houses don't seem to be selling in the first weekend anymore and we're seeing price reductions like we haven't seen in years." Also, inventory is still trending in the right direction, she said. "We ended October with 8,539 homes to chose from, fewer than the end of September, but more than any other month since November 2017." Look for continued price pressure and drops in homes sold in November with rising rates adding additional pressure to prices.