Metro Denver experienced a nearly 25 percent surge in the number of homes and condos available for sale in May versus April, according to a monthly update from the Denver Metro Association of Realtors.
The inventory of homes buyers had to choose from at the end of May reached 6,437, up 9.2% from a year earlier and the highest level for a May in three years. But inventories still remain at historically low levels. Back in May 2007, when the housing bubble was bursting, there were 29,110 homes for sale on the market.
“Overall economic conditions like employment, job growth and net migration are stronger today than 2007-2008. I don’t see a bubble any time soon, but keep an eye on inventory,” Steve Danyliw, chairman of the association’s market trends committee, said in the report.
Unlike prior months, a surge in new listings wasn’t matched with a commensurate surge in home and condo sales. Those rose 6.5% to 5,235 during the month and are down 10.9% year over year.
The median price of a single-family home sold in May dropped 0.88% from April to $451,000, while the median price of a condo rose 2.52% to $305,000. Measured year over year, median home prices are up 7.9%, while median condo prices are up nearly 13%.
The speed at which homes are turning over, which tied a record low, also argues against a market turning to mush. Single-family listings spend an average of 20 days on the market, down 9.1% from April. For condos, the average was only 16 days, which is 15.8% lower than in April.
Tribune Content Agency