COListings provides a monthly market snapshot to help you track the market you care about. For the May overview, we provided an in-depth look at what each item on the market overview actually means.
Total Market Overview
The average home sales price is home sales prices divided by total number of sales. In May, at $377,041, it is up 4.8% compared to 2015 and up over $5,800 from April. New listings measure how much new supply is coming onto the market from sellers. Currently, at 14,525 they are down 2.1% from May last year, and there was only 924 new listings from April to May this year.
Active listings measure the number of homes available for sale at a given time. This has a large effect on supply-demand and home price dynamics. The current inventory of active listings is down 24.6% from last year.
The months supply of inventory measures how balanced the market is between buyers and sellers. This number shows how many months it would take to sell through all the available homes for sale if no new listings were added. According to The Colorado Association of REALTORS®, a balanced market ranges from 4 to 7 months of supply. With the May report showing only a 2 month supply of inventory currently available, it reveals it is currently a seller’s market with more buyers relative to homes for sale. Limited inventory continues to plague many housing markets.
The average days on the market is a measure of how long it takes homes to sell, on average. In May of 2015, it was 55. This year, it is down to 48 days and down another 5 days from April.
This snapshot shot shows that homes aren’t just selling fast. In May they are selling with a 100.2% list price received. This calculation is the difference between the list price and the sold price. This shows on average, homes are selling for just over asking price.
The number of homes pending or under contract counts of all the listings that went into pending or under contract during the reported period. These listings are counted at the end of the reported period and each listing can only be counted one time. This is a real-time measure for homebuyer activity. Since this measures signed contracts on sales rather than the actual closed sales, it is a leading indicator of buyer demand. For May, it was reported at 12,646 and up over 11.4% from last year.
COListings and its agents utilize the knowledge of the latest trends and statistics to improve the service they provide to you. As a buyer or seller, they work to help you make informed decisions. Contact COListings, the local real estate experts.
Source: "May Market Report," Colorado Association of REALTORS® (June 3, 2016).