Denver Metro 6 County Inventory Count
Market Fun Facts (03/02/23): Welcome to the New Year. How will the market look as we enter into the 2023 selling season? To answer this question NeXstep continues to monitor inventory levels across the 6 County Denver Metro. For the fifth month in a row we see inventory levels decrease as we enter into the new year; active listings are down -558 listing this month, for a total of 4,318 active homes for sale. This is a substantial increase from March 2022 as we had only 1,426 home for sale to start off the new year. However, sales are also up +810 properties from last month for a total of 3,114 sold homes in the past 30 days. Consequently, our average absorption rate decreased by appx 1.0 month from 2.35 months to 1.34 months. All six counties experienced a decrease in active listings and an increase in total sales. Adams county at 1.6 months leads all six counties in monthly absorption while Broomfield is the lowest at 1.09 months. Denver County leads the way for the most active listings with 973 and Broomfield County continues to have the fewest listings at 117. Current publications indicate a balanced real estate market would need a minimum of 18,000 listings. Thinking about selling…let’s talk!
What do these numbers mean? To help understand what these numbers mean to our local markets we are now including the number of sold comps during the past 30 days or 1 month. Looking at our sold numbers over the past month allows us to calculate a monthly absorption rate. An absorption rate tells us how many months it would take to sell off our entire inventory should we have no new listings. A balanced market is considered 6 months.
Talking Points For March 2023
Special thanks to Megan Aller at First American Title for the following Market Summary:
Cooling in the market, will rate decreases spawn more demand in comming weeks?
Lots of headline news regarding bank failures resulting in a 0.5% rate decrease, has it trickled down to consumers yet? This last week saw an increase in active listings to 3,695 available for sale, but new listings were down with 1,089 new homes entering the market. From last week to this week we saw that pending transactions went up 4.0% with 1,093 listings going under contract. The odds of selling fell by -1.3% to 65% which is overall a very healthy number for this time of year and is similar to what we experienced from 2013-2019. To offset demand in our market right now, we would need to have over 28,500 homes listed for sale so we only have 13.0% of a balanced market. Listings were seeing on average 4 shows per week, 14 showings to go under contract and 8 median days on market. Of the units that went under contract last week 28.6% reduced their price with an average price reduction of -5.3%.
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