Statistics

Denver Metro Real Estate Market Absorption Rate

Using data obtained from Metrolist, Inc, the Denver areas MLS service provider, the chart above shows the inventory absorption rate to be just under 5 months, the lowest March rate in the past 4 years. The absorption rate is the length of time it will take to sell the current inventory at the present rate of sales.  This low rate is  technically a sellers market, although the market is still bifurcated, with higher priced homes selling much slower then those priced under $300,000. The lower this rate goes, the sooner the local Denver area housing market begins to recover and improve from the economic recession.

Inventory for sale as reported by Metrolist continues to be lower year over year than the previous 4 years.

rt The total number of combined homes sold jumped up in March, most likely due to the housing tax credit and low mortgage interest rates.  Denver area home builders are contributing very few homes to the market as a whole.

Both the median (above) and the average (below) home prices continue to show improvement in the Denver Metro. Artificial sales stimulants are certainly partly responsible for this, but low mortgage rates and a lack of new construction is affecting the market exactly as it should, by increasing price levels.  A lower than national unemployment picture should continue to see the Denver area’s recovery to remain on track.

Average prices continue to rise.