Despite Denver’s overall housing market finally stabilizing, sellers still have that upper-hand in most house and price categories.
But that’s not entirely the case when you look at the Denver condo segment. Active listings, new listings and units sold are all on the rise — and that’s good news for buyers.
There’s one segment in particular — condos priced between $750,000 and $1 million — where inventory has increased to more than six months worth, giving buyers not only more choices, but also more negotiating power as sellers face the stiffest competition they’ve seen since 2013.
Let’s take a look at the latest numbers from the Denver Metro Association of Realtors. Comparing year-to-date data from September 2018 to September 2019…
- Denver condo inventory increased 20.5% to 2,763 active units across the metro area.
- The average sale price of a metro Denver condo is up 3.4% (from 2017 to 2018, it jumped 11.3%) to $364,418.
- And most important for buyers, the close-to-list price has dropped 1.13% which means no more bidding wars and buyers can almost certainly expect paying less than asking price.
As a number of new condo development projects that are in the works across Denver come online, we can expect that inventory to keep rising, which will force sellers to price more aggressively.
But that doesn’t mean Denver condo buyers can simply dawdle on their decision. Technically, the data shows that the average days spent on market for condos is up 47.6%, from 21 days through September of 2018 to 31 days. When you eliminate outliers, though, the current median day on market is only 12 days. So, yes — Denver condo buyers have options and they can take their, but until inventory is really booming, that’s only true to a certain extent.
Just look at what happened in early October. We messaged buyers about two of the most sought after condo buildings in Denver that had units available. One of those units at The Pinnacle at City Park went under contract in just done day. The other, at One Lincoln Park, is still available, but expect that to be gone soon as well.
So, for those interested in living the condo life (or potentially investing in condos), it’s important to have a condo expert be on the lookout as more buyers take advantage of the increased inventory. You can find our team here and learn more about our mission here.