Month over month, prices in the Denver Metro area reversed the trend, by rising 1.27% for median and 1.11% for average residential prices. Year over year the pace of the housing price increases slowed with the average residential prices rising by only 0.66% and the median residential prices falling 1.23% from February 2018.
Housing inventory is up 2.31% to 6,017 month over month. However, if we look at the year over year inventory statistics, inventory is up 47%, which is a good sign for buyers at the start of the important spring buying season. Sold homes were down almost 11% year over year. Buyers appear to be on strike still. Sellers in the future will have to continue to drop their prices if they want to sell their homes.
Homes are sitting for longer with the average home sitting on the market for 39 days up 22% 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, “If you listen closely, you may have heard the real estate market start to growl in February and it seems to be moving into March with a roar.” Sorry Jill, but we disagree. February’s prices were still down versus a year ago and barely up month over month. We see March having fewer sales than a year ago, more inventory and slower price appreciation if any at all. As we said last month, look for increased pricing pressure heading into the at the start spring selling in March and higher inventory levels in 2019 than we have seen in the last 5 years.