The charts below demonstrate how consistently the seller’s market in the City & County of Denver and Jefferson County has performed over the last four cycles and how it shows little sign of ending soon. (Below the Denver charts are printed the same charts for Jefferson County.)
It appears that the steady influx of people from other states continues to exceed the number of homes being built, which assures a continuation of high demand and low supply.
While it’s true that the inventory of active listings is extremely low, the first chart shows that it’s not for lack of new listings. The reason we’re experiencing that reduced inventory is not that sellers aren’t listing their homes, but rather that new listings, when properly priced, go under contract quickly. The second chart shows a widening discrepancy between average days on market (before going under contract) and median days on market. An overpriced home might remain on the market for 50, 100 or even 200 days before selling. Then, when it does sell, its high days on market number brings up the average, but not the median DOM. (continued below charts)
The good news is that even those overpriced homes do ultimately sell, although for less than their asking prices – and often for less than if they had been priced right to begin with. Don’t include your home is that statistic. I’d be happy to send you a free valuation report. Contact me at firstname.lastname@example.org.
The peaking of average DOM each January suggests that those slow selling homes are actually selling best in the winter, which proves my closing point —
Prospective sellers ask me whether they should wait until spring to put their home on the market, now that the “selling season” is over. I respond that there is no longer a “selling season.” Those buyers who failed to secure a home this summer are still out there, still receiving email alerts of listings matching their search criteria, even in mid-winter. You can be sure that when a new listing matches their search criteria and appeals to them, they’re on the phone right away asking their agent to show it. With less competition, there’s no better time to list a home.