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Denver Real Estate Market Report for November 2019

Anton Usaj

See below for our full report for November 2019 and please let us know if you have any questions. We email this market infographic report on the Denver Real Estate Market each month. To get on the email list, please reach out to marketing@usajrealtystg.wpenginepowered.com and request to be added.

Update on the Denver Housing Market

For the fifth month in a row, the number of active listings was down month-over-month. November’s decrease is by far the most dramatic, with an 18.34 percent drop when compared to October 2019. The price of single-family homes increased by an average of 6.85 percent from this time last year, and condos’ average price rose by 4.35 percent. This is the highest rate of appreciation we’ve seen since this same time last year.

The average sold price for a single-family home in metro Denver for November was $537,624 and the average sold price for a condo was $365,856.

sale prices homes in denver

Inventory dipped from 6,988 in October to 8,557 in November. New listings on the market plummeted from 5,425 last month to 3,651. A decrease this time of year is not highly unusual (and is also aligned with national statistics), given the Thanksgiving holiday and the impending December holidays, but the dip is extremely noteworthy. For example, in October 2018 we had 8,539 active listings and in November 2018 it dipped to 7,530. This means less choices for buyers and less room to negotiate. The number of days on the market rose to 35, up from 33.

Read next: Rent vs Buy? More Millennials are Buying Denver Homes

If you are weighing your options of buying or selling in 2020, a Usaj Realty broker would be happy to assist you in expertly navigating the Denver market. Many factors go into deciding what could be right for your particular situation, so sitting down with an expert can be a great opportunity to discover the best route for you.

Key takeaways for November 2019 via DMAR:

Stats below include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties

In the News: What’s Happening in Denver

80% of millennial renters in Denver not on track to buy home

“In the Denver metro area, only 20 percent of millennial renters are on track to save enough money for a 10-percent down payment within the next five years, according to ApartmentList. Twelve percent of millennial renters in Denver expect they’ll continue renting for life.” – The Denver Channel

Steep drop in Denver area home listings in November

“DMAR Market Trends Committee Member Nicole Rueth is seeing is that this is a seller’s market, but because of the perceived fear that the market has shifted, sellers are pulling back and waiting,” the DMAR said. – The Denver Channel

How Denver rents stack up to buying in the city

“Denver leads the pack in this metric with the sharpest recovery in home prices out of the United States’ 100 largest metros, in addition to outpacing employment growth with an influx of entry-level yet high-paying employment opportunities. From 2010-2017, metro Denver grew by 98,982 households, equating to an 8.42% increase. Over the same period, metro Denver’s homeownership rate decreased over 3 percentage points, from 68.22% to 65.1%. This change represents a 71,137 increase in renter households, accompanied by an increase of only 27,845 homeowners. Simply put, from 2010-2017, approximately 72% of new households formed in Denver chose to rent instead of own.” – CREJ

In the News: What’s Happening Nationally

U.S. housing market experiences largest inventory decline since 2018

“In October, America’s home sales rose by 3.9%, marking the fourth month of the past six to post a year-over-year increase in sales, according to the RE/MAX National Housing Report. “October continued a recent win streak for home sales, and the market is positioned much better than it was a year ago,” said RE/MAX Holdings CEO Adam Contos. “Demand is strong, due in part to low-interest rates, but buyers have limited options because inventory remains such a challenge.” – HousingWire

Starter homes may be making a comeback

“A survey by the National Association of Homebuilders this fall revealed that 80% of American households now believe the nation is suffering from a housing affordability crisis. Even more recent, a report last week by the National Association of Realtors revealed that more than 30% of first-time homebuyers used down payment help from family and friends.” – HousingWire

Next year will be hard on the housing market, especially in these big cities

“Home sales will drop, the housing shortage could become the worst in U.S. history, and home values will shrink in some cities. That’s the 2020 forecast from realtor.com, which holds one of the largest databases of housing statistics available.” – CNBC

This is how the housing market could behave in 2020

“The housing market is projected to heat up in the new year, as 2018’s mid-year downturn is expected to finally come to an end…Low mortgages rates, which Redfin expects to hover around 3.8%, will likely invigorate the buyers’ market, leading to an increase in competition as the nation’s housing inventory continues to dwindle due to several factors including rising tenure length.” – HousingWire

Report for November 2019:

Read Denver Metro Association of Realtor’s full report on last month’s Real Estate trends and statistics in Denver here.

And as always, please let us know if you have any questions!

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