Denver Metro 6 County Inventory Count
Market Fun Facts (05/03/23): Spring has sprung! 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 second month in a row this year we see an increase in inventory levels; active listings are up +379 listing this month, for a total of 4,771 active homes for sale. This is an increase from May 2022 as we had 3,098 home for sale. Sales are also up +542 properties from last month for a total of 4,246 sold homes in the past 30 days. However, our average absorption remained the same at 1.16 months. Only two counties showed an increase in absorption rates; Arapahoe and Broomfield county. Jefferson has the lowest absorption rate at .91 months and Douglas county as the highest rate at 1.36 months. Denver County leads with the most active listings at 1,198 and Broomfield County continues to have the fewest listings at 129. 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.
Special thanks to Megan Aller at First American Title for the following Market Summary:
Overall demand slowed for both attached and detached homes for sale from March to April…
The Monthly Highlight Reel
• Active inventory tends to begin to rise in April and continues this trend through September. This April
active listings for sale rose by 3.7% to 2,810 homes for sale. Historically in April based on data from
2013-2019 (excluding pandemic years) where Metro Denver averaged 4,605 homes for sale. Inventory is
expected to remain tight through the rest of the year.
• Demand for homes by way of pending transactions fell from April to March by -10.9% with only 2,521
homes going under contract. Closed transactions were up due to a heavier March buying period with a
month over month increase of 18.9%. However, pending and closed transactions are both down from
one year ago by -25.3% and -20.4% respectively.
• Months of inventory remains below 1 month indicating multiple offers are more likely, currently sitting at
0.9 months. With more buyers in the market than homes to sell bidding wars are back with 40.9% of
homes sold for over asking price.
• Multiple offers bumped average and median sold prices up from March, increasing the average sold
price by 3.1% to $761,933 and the median sold price by 2.8% to $636,000. Both average and median
sold prices are down from the peak of April 2022, average is down -7.0% and median is down -6.5%.
• While multiple offers are back, they are not as severe as 2020-2022 with homes selling for multiple offers
going for 3.6% over asking price on average.
• Average and median days on market plummeted from the previous month to 30 average days on market
or half of the homes (median) under contract in 8 days.
• 41.3% of homes were under contract in 7 days or less, which was down from March by -4.1%. If a
homes was under contract in 7 days or less, it was likely to receive 102% of it’s original list price
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