Surge in inventory of Denver area homes for the month of May

The Denver Metro Association of Realtors reports that metro Denver experienced a nearly 25 percent surge in the number of homes/condos for sale in May versus April.

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From The Denver Post:

“The inventory of homes buyers had to choose from at the end of May reached 6,437, up 9.2 percent 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 percent to 5,235 during the month and are down 10.9 percent year over year.

The median price of a single-family home sold in May dropped 0.88 percent from April to $451,000, while the median price of a condo rose 2.52 percent to $305,000. Measured year over year, median home prices are up 7.9 percent, while median condo prices are up nearly 13 percent.

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 percent from April. For condos, the average was only 16 days, which is 15.8 percent lower than in April.”

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Other market insights from the Denver Metro Association of Realtors:

-Mortgage rates have increased a half point this year thus far, with speculation they’ll increase another half point by year-end.  This is setting urgency for some buyers to act now before rates rise.

-Denver is increasingly realizing its lack of affordable housing options and is trying to combat this through increased affordable housing legislation.

-Despite record lows in inventory, Census Bureau data shows approvals for 13, 525 housing units in Colorado through March, up 41 percent from the year prior.  Permits to build single-family homes is at its highest level since before the Great Recession.