Month over month, prices in the Denver Metro area started to weaken again, by 1.25% for median and 0.26% for average residential prices. Year over year the pace of the housing price increases slowed with the average residential prices rising by only 2.89% and the median residential prices rising 3.6% from January 2018.
Housing inventory is up 5.5% to 5,881 month over month. However, if we look at the year over year inventory statistics, inventory is up 52%, which is a good sign for buyers starting to look to buy in 2019. Sold homes were crushed down almost 30% month over month and almost 15% year over year. Buyers appear to be on strike. Sellers in the future will have to continue to drop their prices if they want to sell their homes. The big test for this will be in March with the start of the spring selling season.
Homes are sitting for longer with the average home sitting on the market for 42 days up a 5% month over month and 20% year over year.
We are still not in a buyer’s market yet, but we will have to wait until the spring to see what the outlook will be for 2019 prices. Jill Schaffer, Chair of the DMAR Market Trends Committee, said, “The good news about January’s housing statistics is that buyers are taking advantage of their choices and sellers are still seeing appreciation with average sold prices creeping up 2.89% from $448,132 in January to $461,101 in January 2019.” This start to 2019 is aligned with our with our forecast that the bubble would continue to deflate in 2019, with fewer sales, more inventory and slower price appreciation, all three which happened this month. Look for increased pricing pressure heading into the critical spring selling and higher inventory levels in 2019 than we have seen in the last 5 years.