“The Denver Metro housing market had another strong month in May, with a welcome increase in new listings that helped inventory levels grow and kept sales strong,” said Kirby Slunaker, president and CEO of REcolorado. “Market challenges remain; however, we continue to see strong numbers this buying and selling season, as home buyers shrug off higher prices and the lack of inventory, a sign of continued confidence in the economy.”
Inventory of available homes for sale saw a month-over-month lift in May. At the end of the month, there were 6,376 active listings on the market, up three percent as compared to last month, but down four percent as compared to this time last year.
Gains in inventory were brought on by sellers bringing new listings of homes for sale to the market. In May, 7,256 new listings hit the market, ten percent more than last month and seven percent more than last year. The most populous Denver Metro counties saw the most new listings come on the market in May. Adams, Arapahoe, and Boulder Counties each saw double-digit gains in new listings as compared to last month.
The boost in inventory helped maintain the strong sales we’ve seen this year. Throughout the month, 5,426 homes sold, up 14 percent as compared to last month and four percent higher than last year. At the current sales pace, there are enough listings on the market to last five weeks. Inventory has been tightening across the country, with inventory of available homes now below a four-month supply nationwide.
Home values continued their steady rise. The average sale price of a Denver-area home reached $442,117 in May, up one percent compared to last month, but eight percent higher than this time last year. Prices for single family detached homes moved closer to the $500,000 mark, up eight percent over last year, reaching an average of $490,508 in May. The average price for a condo/townhome was $317,194 in May, up six percent year over year.
Homes continue to sell quickly across the Denver Metro Area. On average, it took just 29 days for a home to go under contract in May, five days less than last month and two days less than May 2016. According to the National Association of REALTORS, Colorado is one of 13 states with an average days on market measure that is 30 days or less.