According to REcolorado data, seasonal cooling continued through September along with signs of a market that is becoming more pleasing to the buyer. As we close out the third quarter, all major indicators show year-over-year increases.
Increase in Inventory
In September, home shoppers found more inventory of for-sale homes on the market. At September month end, there were 6,562 active home listings on the market, two percent higher than last month and the second highest we’ve seen all year. Although the increase was welcome, inventory levels remain tight, 28 percent lower than we reported this time last year.
Slight Decrease in Average Sale Price
As compared to last month, the average sale price of a home in the Denver Metro area decreased very slightly, bringing the third consecutive month of lower prices. In September, the average sale price for a single-family home was $425,136, less than one percent lower than last month, but still ten percent higher than this time last year.
As compared to last month, the average price of a single family detached home remained relatively unchanged, while the average price for a condo/townhome decreased by nearly three percent.
Home Sales Slow, But Still Strong Year Over Year
The seasonal slowing of home sales seen over the last several months continued in September. Throughout the month, 4,262 homes sold, 21 percent less than last month and a year-over-year decrease of 15 percent. At the current sales rate, there is seven weeks of inventory, up one and a half weeks as compared to last month.
September home sales were strongest in the $300,000 to $500,000 price range, where half of the month’s home sales took place. Homes priced above $500,000 comprised 25 percent of all sales.
Year to date home sales are strong compared to previous years. The third quarter ended with 41,498 homes sold, three percent more than last year and 26 percent higher than 2012 levels. This year there has been $17.7 million in home sales, 12 percent more than last year, and a 97 percent increase as compared to 2012 year-to-date figures.
Homes continue to move quickly, especially in the counties with average home prices in the $300,000 to $400,000 price range. In September, homes spent an average of 27 days on the market, three days more than last month. In Adams and Arapahoe Counties, homes were on the market an average of just 19 days.