Before the final decision of Trump vs. Clinton rolled in Nov. 8, at least one industry observer was assured of a happy outcome for Denver real estate, no matter who won.
Election years, said Steve Danyliw, chairman of the Denver Metro Association of Realtors Trends Committee (DMAR), are always good for homes sales in the metro area.
“Historic data shows that during general election years, starting in 1992, metro Denver has averaged an 8.3% increase in annual appreciation in housing prices, with the non-general election years averaging a less yet healthy 6.3% increase,” he noted.
In fact, average sold prices for Denver homes (both single family attached and detached) rose even higher than that this year. According to statistics from the latest REColorado report, prices increased 9%, from $360,574 in October of 2015 to $392,599 in October of 2016.
This should please prospective sellers. Meanwhile, buyers still face challenges with limited choices. After a few months of increased inventory, October showed a tightening of the market.
According to REColorado, there were 8,008 active listings in October, compared to 9,501 in September, and 5,271 new listings versus 6,501 in September. This represents a 12% and 19% decrease respectively.
This is an historical low, according to DMAR, which issues its own monthly market report. (While DMAR figures differ slightly from REColorado, they show the same trends.) For comparison, Danyliw notes that the record high for October was 29,722 active listings in 2006. The average number of active listings in October is 16,615, more than double the current number.
No surprise, the homes that are on the market are selling quickly. The average home spent only 26 days on the market in October.
While the numbers represent some challenges for buyers, Danyliw is pleased overall. “To those who feel uneasy about the outcome of an election,” he said, “take solace that our local real estate market remains robust.”