Denver home inventory surges 48% in May

Denver metro area experienced a significant surge in available homes in May, with inventory levels reaching their highest point since 2011. According to the latest data from the Denver Metro Association of Realtors, there were 13,599 active listings in May, marking a 14% increase from April and a 48% increase from the same period last year.

The current number of available homes is close to the historic average of 14,510 from 1985 to 2024. The highest number of listings recorded was 30,457 in 2006, while the lowest was 2,075 in 2021.

Despite the increase in inventory, prices have remained steady, with the median close price in May at $600,000, slightly lower than April’s $604,000 but consistent with the previous year’s median close price.

Chair of the DMAR Market Trends Committee, Amanda Snitker, noted that the growing inventory is leading to a build-up of active listings month over month. She emphasized the importance of strategy for sellers and the potential for buyers to have more options.

Recent data from the REMAX National Housing Report indicates that Denver is now among the top 10 metros where conditions favor buyers, ranking third behind San Diego and Raleigh, N.C.

The REMAX report highlights several factors contributing to this buyer-friendly market, including increased inventory, longer days on the market, stable or declining prices, and more new listings.

Nationally, Redfin reports a surplus of 500,000 sellers compared to buyers, the highest margin on record. This imbalance is leading to a buyer’s market, with expectations of home prices dropping by 1% by the end of the year.

In Denver, there are 16,357 sellers and 11,525 buyers, indicating a 42% difference in favor of sellers. The market is seeing increased pending sales, but a slight decrease in closed sales compared to the previous month and year.

Despite the uptick in available listings, the median days on the market have increased from 9 days in May 2024 to 13 days in May. In higher price ranges, such as $1 million or more, there has been a 5% decline in sales volume, suggesting buyer hesitation.

Real estate experts like Greg Cox and Andrew Abrams anticipate further increases in available listings in certain price categories, providing more options for buyers and posing challenges for sellers to stay competitive.

Overall, the market dynamics are shifting towards a buyer-friendly environment, with more inventory giving buyers the opportunity to be selective while sellers may need to adjust their strategies to attract buyers.

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