Year over year prices in Metro Denver area acting like our thermometer in August, they are on fire. In the August ’19 DMAR housing report year over year the pace of the housing prices rose with the average residential prices rising 4.27%, and the median residential prices up 4.58% from July 2018 to July 2019. Month over month median and average prices were split. In the Denver Metro area, median prices rose 1.17% and were down 0.21% for average residential prices. Single-family homes sold price were at $551,516, up 0.58% from June 2019.
Housing inventory is down 1.69% to 9,259 from June to July. However, if we look at the year over year inventory statistics, inventory is way up at 22.45%, consistent with what we have seen all year. The 9,259 homes available were still far below the historical norm of 16,796, showing the marketing inventory is still tight relative to Denver’s history. Overall there are only about 1.7 months of housing inventory in the metro Denver market. A healthy market usually has about 6 months of inventory.
Sold homes were down almost 2.5% year over year, and down 6.19% month over month, which was expected as sales tend to drop off as the new school year approaches.
Homes are sitting for longer with the average home on the market for 25 days up 19.05% year over year, 4.17% from June.
We are still holding to our forecast for the best case for sellers for average prices to increase for single-family sold homes between 1% and 2% year over year in 2020. This increase would put single families between $558,000 to $564,000 next year. We see the +4% increase in August to be the high point of the year over year increases.
The market should have some more room to run in the short term with the Federal Reserve cutting interest rates last month and supercharging the mortgage market. We wouldn’t put it past them to push rates below zero in the next downturn, which looks like it gets close every day. All bets are off on what the 30 years mortgage would like with the 10 year T bill yielding negative. Metro Denver home buyers on the edge of the fence buying a house, keep following us closely so you don’t make the wrong decision about one of the most significant decisions in your family’s life. Please share us on Facebook and Twitter, or even YouTube to help your friends and family make the right decision about their real estate transactions in the metro Denver area.