Strong Year-End Sales and Lowest Inventory Since 1993 Drive Prices Higher
January 15, 2013
According to the latest data from Metrolist®, 2012 ended on a strong note for the Denver housing market. Buyer demand combined with historically low inventory levels helped buoy average and median sales prices across metro Denver.
“Overall, Denver was a definite bright spot for real estate on the national landscape,” said Kirby Slunaker, Metrolist President. “The close of 2012 saw an impressive double-digit growth in home sales – up 18% from 2011.” Slunaker explained that these factors contributed to a 9% increase in the average sales price over 2011 year-end numbers.
According to Slunaker, given the current sales rate, the Denver metro area has less than a two-month supply of homes. “Available inventory on REcolorado, our consumer website, closed the year at historic lows. We expect buyer demand to remain high in 2013, which is good news for sellers,” he noted. “Prices returned to pre-recession levels and we’re optimistic that Denver homes will continue this upward pricing trend throughout the year.”
The Denver Post recently reported an influx of young, highly educated people and enhanced new business opportunities in 2012, two indicators that a healthy and sustainable real estate market may be on the horizon for Denver. “When you factor the demographic changes with today’s housing market, condo developments may offer some really interesting prospects this coming year,” commented Slunaker. “This segment of the market saw a 15% increase in sales year to date, along with strong upticks in average and median prices. Combined with a 37% drop in units on the market compared to last year, we expect demand to drive growth in this type of home.”