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Statistically, Denver is Still in a Seller’s Market

With 1.73 months of housing inventory across all price ranges in the Denver area, we are technically still experiencing a seller’s market. Homes priced above $1 million have the most inventory, however, with single-family homes at 4.93 months of inventory, just under the five months that signify a balanced market. The month of July ended with 4.36 months of condo inventory. Large condo projects like Laurel in Cherry Creek have been closing on units, pushing up the number of higher-priced condo sales.

 

Home Prices are Peaking

The average sold price in the residential market in July was $498,960, down slightly from June’s $500,010, still up 4.27% year over year. The median sold price was up slightly month over month to $434,000 from $429,000. The average single-family home price was up 0.58% from June to $551,516. Year to date, the average sold price was up 1.83%. The average condo sale price was down 1.46% in July to $362,922; this is lower than the past three months, but up 3.01% year to date.

 

Sellers Homes on the Market for What Felt Like a Long Time Compared to Last Year

The median days on market for single-family homes and condos was up 37.50% month over month to 11 days. While that percentage may seem high, home sellers only had to wait three more days to sell their homes in July this year compared to last. Year to date it’s taking, on average, 29 days to sell a home compared to 24 days last year.

 

Metro Denver is a seller’s market by months of inventory, but continues to head toward a balanced market, with conditions favoring buyers — like historically low interest rates, price reductions, and more homes to choose from with more time to choose.

Colorado Real Estate News

Denver Real Estate Midyear Update

Stay on the forefront of real estate news with the help of the mid-year update! Stapleton22

Denver Real Estate Midyear Update: More Conditions Favoring Buyers Creating Balance

With metro-Denver housing inventory at its highest level since October 2013 and interest rates still low, now is a good time for home-buyers. On the flip side, with home prices peaking now is also a good time for home sellers; making for a more balanced market.

Housing Inventory

Housing inventory is up 28 percent year to date from 2018. The first half of this year ended with the most active listings, at 9,520 at the end of June, since October of 2013 which was at 9,734. For perspective, the record-high June for active listings was in 2006 with 31,900, and the record-low was in 2015 with 6,197.

Year to date in the Luxury Market (homes priced $1 million+), single-family home sales were down 2.72 percent year over year, but up 34.05 percent compared to 2017. Luxury condos also saw striking results with sales up year to date at 38.78 percent year over year and 4.26 percent since 2017.

Home Prices

The average sold price dipped 0.54 percent from May’s $502,518 to $499,807 at the end of June, but it crept up 1.64 percent year to date. More choices for home-buyers means sellers have had to make price adjustments to be competitive. Sellers with homes priced between $1,500,000 and $1,750,000 have been taking the biggest cut with a 91.20 percent sale-to-original-price ratio for single-family homes and 94.9 percent for condos.

Days on Market

Homes have been staying on the market longer before going under contract this year. The median days on market was up 66.67 percent from six days at this point last year to 10 so far in 2019. The average days on market is up 25 percent year to date compared to last year, from 24 to 30 days. Meanwhile, days on market for all price ranges indicates a seller’s market except over $1 million+ where it’s an equal market between buyers and sellers with 5.16 percent months of inventory for single-family homes.

Colorado Real Estate News

More New Homes Hit the Denver Market in May

CORYMERRILL7 copy2More Home Choices in May

In May, there were 8,789 new listings, up 17 percent from the previous month. That meant home-buyers were able to look at a number of homes at a time and make comparisons – and many found what they were looking for. At month’s end, there were 6,470 homes under contract, up 5.65 percent from April.

Even with all of those offers written and accepted, the month still ended with 8,891 homes for sale. That is the highest end-of-month number of active listings since November 2013 when buyers had 9,352 choices! Yet, when put in perspective, it’s very low compared to the high in May 2008 when active listings reached 26,333 in total.

Home Prices Breaking Records

The market has been experiencing a drought of new homes for years, so the increase in inventory is a welcome relief for buyers. Even with the added inventory, prices were still up. The average single-family home price reached a record-breaking $555,482!

Year to date, for single-family homes, the average sold price was $534,577 and median sold price was a record-breaking $450,000, up 1.45 and 1.12 percent from last year respectively. The average sold price for condos year to date bumped up 3.11 percent compared to last year to $364,134, and the median price topped out at a high of $301,500.

Luxury Market Sales Steady

The number of sales of $1 million+ homes remained steady at 915 year to date, up 1.55 percent from last year. While sales in the single-family market decreased year to date by 2.8 percent from 2018, there has been a large jump in condo sales with 110 sold year to date compared to 73 in 2018, an increase of 51 percent.

There has not been any significant changes month over month or year over year in terms of price per square foot, outside of the condo total price per square foot metric that significantly jumped from $546 last year to $656 in May of 2019 – an increase of 20 percent. Single-family average price per square foot continues to hover around $300, ending May at $297.

Colorado Real Estate News

April’s Market Trends Are All About Perspective

Market TrendsApril is All About Perspective

April’s market trends require perspective to fully understand the big picture of what’s happening in real estate today.

In the entire residential market, it took twice as long to sell a house so far this year compared to last. While that sounds alarming, and the 100 percent increase is accurate, when you realize that means the median went from six days on the market in 2018 to 12 in 2019, it doesn’t look so bad. Less than two weeks on the market is still fast. That’s what seems to be going on right now: some stats look like the sky is falling, but when put into perspective you can see why prices continue to go up.

Average Single-family Home Price Hits New High

The average single-family home price hit a new high of $553,371 at the end of April and reached a year-to-date high of $527,244. The average condo price was up 2.62 percent from March, ending the month at $368,565; up 2.17 percent year to date.

More Housing Choices and More Demand

April ended with 7,012 active listings. In the past four years, active listings in April were in the low 5,000’s. We are up 36 percent year to date compared to last year. That is significant; yet we are in a seller’s market in every price range. Overall there is only 1.5 months of single-family and condo inventory. That is much lower than the 5-6 months needed to equalize the market between buyers and sellers.

Notably, 7,518 new listings hit the market in April, up 21.28 percent from March – and buyers swooped in with 19 percent more homes under contract month over month!

Luxury Market Loved April

The Luxury Market (homes priced $1 million+) saw pricing, number of homes sold and overall sales volume increase in April compared to the previous month and year. Last month, 234 homes in the segment sold, up 32.2 percent month over month and 4 percent year over year.

More choices, more contracts and prices still going up. No matter your perspective, these sound like good market conditions overall.

Colorado Real Estate News

Spring Brings Seasonal Simmer to Denver Real Estate Market

CRESTMOOR10Real Estate Heated Up Amidst Cold Spells

Despite the cold spells in March, the entire residential market saw a seasonal simmer as spring picked up steam with real estate transactions. Homebuyers had 21.75 percent more new home choices – and they liked what they saw! Homes under contract were up 27.39 percent from February.

Here’s what else was up: Year to date, single-family active listings jumped 26.29 percent, new listings were up 2 percent, and days on market more than doubled from seven last year to 15.

Prices were up too, but just barely. The single-family average price was up 0.95 percent year to date to $516,469; the median price was up 0.34 percent to $436,500. The bump was a little bigger for condo prices, with the average condo price at $356,142 year to date.

Not Everything Was Popping Up like Daffodils

The number of homes sold so far in 2019 dropped 5.79 percent and thus the sales volume was down 4.36 percent year to date. Homebuyers are pushing back on sellers’ list prices with the close-to-list-price ratio down to 99.04 percent, which is the lowest ratio it’s been at this point in the past four years.

Luxury Market is Ready for the Spring Season

With warmer weather on the way, the Luxury Market – homes priced $1 million and up – is primed and ready for a spring selling season. In March, single-family homes that sold jumped to 152 from 117 the month prior. Of note, the average days on market dropped to 50 in March, from 82 in February and 75 this time last year. With this type of activity, it’s no surprise the close-to-list-price ratio is still holding strong at 97.72 percent. Condos gained similar momentum.

So, is it a Buyer’s or Seller’s Market?

The market under $1 million is still very much a seller’s market, and we are teetering on an equal market between buyers and sellers over $1 million with 5.16 months of single-family inventory and 5.59 months of attached-home inventory. At this point, buyers do not have the upper hand in any price range.

 

Colorado Real Estate News

Love Was In The Air In February’s Real Estate Market

February's Real Estate MarketLove was in the air in February’s real estate market

In addition to the number of homes under contract being up nearly 16 percent month over month in metro Denver, the Luxury Market (homes priced $1 million plus) faired particularly well too. Last month, 119 homes in the luxury segment closed for a total of $178,766,560 in sales volume, accounting for an over 23 percent increase from January.

Of course, long-term home closings in the Luxury Market are down 6 percent year over year, making the start to 2019 slightly more challenging. But, with 6.58 months of housing inventory, March is a great time to take the market back in bullish fashion for this luxury buyer’s market.

Yes, the selling—and buying—season is back!

In fact, the average number of homes sold in February’s real estate market increased by nearly 5 percent month over month. The culprit? Potentially the 5.6 percent increase in listings from January, which is 47 percent stronger than buyer choices a year ago. And because more single-family homes went under contract than were listed in February, housing inventory surplus is eroding.

For the condo market, however, the number of listings continues its four-year upward trajectory. In fact, there was a notable 79 percent rise in active listings at the end of February.

Freddie Mac also tells a story of ascent in the housing market: With the strong job market and a gradual decline in mortgage rates for the second straight month, housing demand continues in 2019.

No better place to be than at a Mile High

According to Forbes, Denver is the most competitive housing market in the nation. What does this mean for you? That there are far fewer homes for sale than buyers in Denver, putting this market solidly in a compression phase of the housing cycle. And what can you expect? That this cycle will continue while prices rise steadily through June. If it’s anything like years past, we’ll start to see buyer fatigue and inventory hit an annual high in July.

In February, there was a 47 percent increase in active listings year over year for the residential market as a whole, generating a 5.6 percent increase in new listings compared to January.

Denver is still in a strong seller’s market for single-family homes in the non-luxury segment, with only 1.92 months of inventory available.

As an interesting aside, Denver is sixth on the national list of apartments completed, with 11,700 apartments built in 2018.

Colorado Real Estate News

Denver Real Estate Moves Toward More Balanced Market

Balanced MarketPredicting how the real estate market will perform is like looking into a crystal ball. So, the best way to forecast how 2019 will fair is by taking a look back at trends from the previous year.

New Year, New Market

Last year truly was split down the middle with two distinct tales. The first half of the year kicked off with the same flurry of homebuyer excitement and activity we have seen in our hot real estate market over the past several years. By June, housing inventory jumped which marked a major milestone moment for Denver-area homebuyers and sellers as the market took a sudden shift. At that time, the adjustment formally commenced and, since, conditions have been moving toward a more balanced market.

Home Sellers are Still in Control, with One Exception

Despite what feels like a major market shift, home sellers in Metro Denver are still in control in all housing price ranges, except homes priced over $1 million where homebuyers and sellers are on equal footing.

The luxury market was record breaking this past year. In 2018, 2,156 homes sold and closed for $1 million or greater – up 18 percent compared to 2017. The closed dollar volume in 2018 in the luxury segment was a record-breaking $3.29 billion, up 18 percent year over year.

Furthermore, the luxury market is kicking off the New Year on a good note. In December, the average days on market for luxury homes dipped slightly to 72 from 74 in November and 110 year over year. Close-price to list-price was up, just shy of two percent from December of 2017.

Surprisingly, Home Prices Continued to Rise

With home sales down and inventory up, it might not make a lot of sense for home prices to be up, but they continued to rise.

In 2018, compared to 2017, the number of home sales was down 5.5 percent and housing inventory was up 44.7 percent by year-end. The average price for a single-family home in 2018 was $522,839, up 8.05 percent in a year. The average price of a condo in increased 9.82 percent, ending 2018 at $351,677. Home prices continued to rise in large part because people continue to move to the Denver area.

Notably, though, with more competition, many home sellers have recently had to make price reductions for the first time in years.

 

Overall, a more balanced market is a good thing as we are shifting to a bit more normalcy. The Denver-area housing market is still hot, albeit seasonally cool for the time being, and offers exceptional opportunities for homebuyers and sellers alike.

Colorado Real Estate News

Real Estate Market Factors Continue to Favor Home Sellers

Real Estate Market While October brought with it a track back to normal seasonality with an increase in housing inventory, so too did it bring real estate market factors – including sales volume, days on market, and housing prices – that continue to favor home sellers in the Denver area.

More Inventory Makes for a Healthier Market

After years of a lack of homes on the market for buyers to choose from, housing inventory is trending up. For the month of October, record-low inventory occurred last year with 6,312 listings and has steadily increased to 8,539 last month. For a historical comparison, the average active listings for the month of October between 1985 through 2017 is 16,003. So, increased inventory is a welcomed change because supply and demand play a critical role in the health of the market.

Market Continues to Favor Sellers

The market is strong which is abundantly apparent in the total sales volume year to date. This year, through October, sales volume has exceeded $22.5 billion, up 5.45 percent from last year. Yet, many agents are experiencing price reductions. Those reductions are mostly instances in which sellers are pricing homes based on the booming summer sales that have since seasonally slowed.

The average and median home prices in October were $471,321 and $400,000 respectively, up 7.12 percent and 5.26 percent compared to 2017. The average sold price of a single-family home last month was $526,092, up 8.43 percent year over year.

Priced right, homes are still selling quickly. The average days a home was on the market year to date through October was the same, at 24 days, as in 2015, 2016 and 2017.

Luxury Market Highlights

The 161 homes priced $1 million and greater that sold in October is consistent with the 165 homes that sold in October of last year. Year to date, there have been 1,805 total luxury homes that have sold, accumulating an astonishing $2.75 billion in sales volume in the luxury segment. Last year, those figures were lower even though it too was a strong market at 1,432 total luxury homes that sold year to date in 2017 through October, equating to a sales volume of $2.19 billion.

With a record-breaking, hot real estate streak over the past several years, a shift to a more balanced market is in due time. Right now continues to be an incredible time to both buy and sell.

Colorado Real Estate News

Home Sales Decline in Denver’s Housing Market

September Home SalesCooler days brought with it conditions of a cooler market too in the Denver-area. Is this shift in the market seasonal or something more? In fact, it’s a little bit of both.

Seasonally, we expect to see home prices and sales to drop this time of year. They have been down month over month for the last three months, but, again, this is normal. The outlier, however, is the significant 33 percent month-over-month decrease in sales of homes priced over $500,000. For comparison, metro Denver experienced a 17 percent drop during this same time period last year.

Looking at the housing market from a macro level, what is happening is that we are heading towards balance. Balance is where conditions favor the home-buyer and seller equally, which is not something we have experienced for some years now.

Market Adjustments Affecting Home Prices

In the single-family home market, the average sold price decreased 3.79 percent month over month to $502,034, while the median price decreased 2.73 percent to $428,000. The year-to-date average sold price stands at $523,224 for the single-family home market, up 9.16 percent from last year, with the median sold price at $445,000, up 8.54 percent. Condos continue to outperform single-family home prices with the average sold price of $350,766, representing an 11.38 percent increase over 2017. The median price of condos sold also increased by 12.34 percent to $299,900.

Seasonal Slowdown in the Luxury Market

As far as the luxury market goes, homes priced $1 million and greater, it was a record-breaking summer. While sales of residential homes priced over $1 million plummeted 44 percent from August to September, it is important to look at the whole picture. Year to date, 29 percent more homes priced $1 million and greater have sold this year compared to last year. Furthermore, year-to-date sales volume in this luxury segment is nearing $2.5 billion, a whopping 27 percent increase over last year.

Taking a deeper look at the numbers, in September, 115 homes sold and closed for $1 million or greater – down 44 percent from the previous month and down 4.17 percent year over year. The closed dollar volume in September in the luxury segment was approximately $173 million, down 45.02 percent from the previous month, and down 6.9 percent year over year. Notably, year-to-date sales volume in this segment is outperforming years past. Furthermore, year to date, September had the lowest median and average days on market on record.

Our ‘hot’ market is still thriving, yet it is going through a shift that is to be expected due to both seasonal adjustments and its move toward balance.

Colorado Real Estate News

Denver’s Active Inventory of Homes Sees Growth

Prospective home buyers in Denver have reason to cheer! There are more homes to choose from today than in the past four years. While there still aren’t enough homes on the market to satisfy a city the size of Denver, the active inventory is starting to climb. In fact, since July the active inventory has grown by 7.36%. At the end of August, there were 8,228 active listings on the market. A near 12% increase from the 7,360 homes that were on the market a year ago. Of these active listings, 6,121 of them were single-family homes, which equates to almost 75% of all the listings.

New Active Inventory Hits The Market

Last month, 6,636 new listings hit the market, far exceeding the 5,073 homes that were sold. The number of homes sold last month dropped by 11.48% from a year earlier. And the average price of all homes sold in August was $478,838. Largely flat from July, but up 9.73% from August 2017. Rising home prices, coupled with rising mortgage rates, have dampened sales in Denver. A 30-year, fixed-rate mortgage is averaging a bit under 4.5%, whereas, a year ago rates were slightly under 4%.

While access to more homes is good news for home buyers, Denver remains a strong seller’s market. There is only a 1.68-month supply of unsold homes. Meaning if no new homes were added to the market and sales stayed the same, all homes would be sold in just 7.3 weeks. And while the months of inventory is up 7.6% from a year ago, rule of thumb indicates a market is in equilibrium when there is 4-month to a 6-month supply of unsold homes.

The Luxury Market Is On A Roll

The luxury market with homes priced at $1 million, remains the one segment that continues to defy the overall trend. There were 191 luxury home sales in August, a stunning 31.72% increase from August 2017. Luxury single-family homes saw an even bigger year-over-year increase, jumping by 37.4%. There were only 5.10 months of inventory for luxury homes in August, a 38.4% drop from August 2017. Indeed, homes priced at the top of the market are the only segment of the market that is balanced.

For the overall market, now is a good time to be house-hunting. Mortgage rates, while no longer at historic lows, are still low by historic standards.