April 2019 Denver Market Update

This market update was discussed in the April 2019 roundup.

DMAR April2019 Data Snapshot

The amount of active listings has increased by 36% from last April. This equates to a little over 1,600 additional listings from 2018. The Days On Market has made a 66% jump! However, this has only increased the Days On Market from 6 to 10. Properties in Denver are still being sold very quickly even with the small amount of inventory that is slowly being added.

The total amount of Under Contract properties is up 4% year over year and over 27% from March 2019. This is what we expected to happen and was discussed in our last roundup. There could be multiple factors that lead to this increase but the bad weather in March, a decrease in interest rates, and an increase in inventory have given more buyers the opportunity to purchase a home.

DMAR April 2019 End Of Month Active Listings and Solds

The active inventory for the Denver market is slowly rising but is still extremely low. If you look at the inventory from a 10 year period you can see we are still far below the amount of inventory that is needed to satiate the number of buyers who are still looking to purchase. As inventory rises the amount of homes sold is rising as well. This is a healthy spread and is not indicative of a real estate bubble in the market.

Your Castle April 2019 Months Of Inventory Graph

4 to 6 months of available inventory indicates a well balanced real estate market. Since 2011 the Denver market has very much been in favor of the seller’s. Even as our inventory continues to grow we are still not approaching a seller’s market. We are currently still below 2 months of inventory, indicating that our inventory could double and we would still not consider the Denver market to be balanced.

Monthly Indicator

Your Castle Q1 2019 Seller Concessions Graph

The last 5 years concession has remained fairly consistent in the Denver market. Around 30% of the total amount of homes sold were providing concessions to the buyers and the total concession amount was steady at about 1% of the purchase price. Since Q3 in 2018, we have started to see an increase in the number of sellers who are willing to provide concessions, even though the amount has been about the same. This increase is to be expected. As inventory rises and sellers prefer their properties not to go back on the market they are willing to negotiate small sums to ensure a timely close. Going back on the market could require the homeowner to make another mortgage payment which could be more costly than the concessions.

Analyze Before You Buy
Start Evaluating Properties Today with Our Free Toolkit
In a rapidly changing market, having the tools you need to help you analyze the data is critical. Know what the numbers will look like ahead of time so you don't buy a bad deal. Our toolkit is designed to help you thoroughly analyze any kind of deal so you can invest with confidence.
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
Similar Post You Might Also Like
Deal Analysis - Denver
How This Investor Still Lives for Free
Jeff White joins us to analyze his 7th house hack—just one away from his ultimate goal of owning 8 properties!
Deal Analysis - Denver
How to Combine House Hack Strategies to Live for Free
One of the great things about house hacking is its versatility—house hackers aren’t locked into just one strategy. In this
Sign Up For Our Newsletter
What do you want to learn today?