What types of properties are selling fastest/slowest in the Metro Denver market area, and why?
Overall, the Denver market is relatively healthy. Our average months of inventory (MOI) is 5.3, below the 6 month level of inventory that is traditionally considered a balanced market – giving a slight advantage to buyers. What’s very interesting is how completely balanced and uniform the market is under $300k. For example, MOI for homes under $85k is 4.6. MOI for homes from $85 - $135k is 4.3. MOI for homes from $135 - $210k is 4.5. MOI for homes from $210 - $315k is 5.1. These numbers suggest a very even, unexciting, normal market! Homes from $315 - $460 have a slightly higher MOI at 6.1 (almost perfectly balanced). Only when you isolate properties above $460k do you see a definite buyer’s market in place with 9.1 MOI. In the luxury market, the higher the home price the higher the MOI.
What this means is that there is no relatively fast-selling segment of the market. However, on the buy side there is a niche that is very active. The longterm, buy and hold investors who are picking up properties under $150k are buying up everything they can, helping to support this segment of our market. These investors are taking advantage of a unique combination of circumstances including: record high home affordability, record low interest rates, reasonable lending guidelines, record low vacancy (1.4%!), and consequently rising rental rates. Never before have we seen a more favorable combination of factors that better support a longterm investor’s goals.