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

The Number of Homes on the Denver Real Estate Market Continue to Rise

Denver Real Estate

There is good news if you are a prospective home buyer in the Denver area. Last month, the market experienced a near 25% increase in the number of homes on the market from April, with an active inventory of 6,437 single-family homes, townhomes and condominiums. While inventory normally rise on a month-to-month basis this time of the year, as the historic strong summer selling season kicks off, this May saw an especially big percentage increase. In May 2017, for example, the market experienced a 9.96% increased from April. Therefore, the percentage increase this May was about 2.5 times greater than a year ago. Year-over-year statistics showed a 9.19% increase in active listings this May, compared to a 7.91% increase in May 2017 from May 2016. Some 7,748 homes hit the market last month. And the number of new listings on the market rose by 12% from April.

Meanwhile, home prices rose only slightly month-over-month in May, but continued a double-digit march upward on a year-over-year basis. The average price of all homes sold in the metro area is approaching $500,000, a milestone already reached for single-family homes. The average price of all homes sold last month was $490,355, less than a 1% increase from April. However, it was a different story for all homes on a year-over-year basis, with prices rising by 11.37%. The average price of a single-family home, meanwhile, was $540,624, largely unchanged from April, but up 10.67% from May 2017. The sales activity also picked up on a month-to-month basis.

The 5,235 sales of all homes marked almost a 6% increase from May and the 6,178 homes placed under contract was about a 5.5% increase from the previous month. The increase in listings was reflected in the months of inventory. There was only a 1.28-month supply of single-family homes on the market in March. As incredibly low as that is, the months-of-inventory for single-family homes was up 8.5% from May 2017.

The good news for first-time home buyers is that on a percentage basis, the months of inventory almost doubled at some price points. But don’t let the large percentage increases fool you, because the numbers are small. For example, there was 1.92-months-of-inventory for homes priced from $100,000 to $199,999 last month, a 97.9% increase from May 2017. Still, there were a mere 23 listings available in that price range last month, so it is easy to imagine price wars for the two dozen homes listed below $200,000. But what is encouraging is that the luxury home market continues to be the strongest in the Denver area on a percentage basis. At the end of May, there was a 4.16-month supply of unsold homes in that price range. That is a 28.6% drop in luxury inventory levels from a year earlier. The luxury market is the only price point that is in equilibrium between buyers and sellers in the Denver area. Despite the increase in inventory levels, the overall housing market in the Denver area remains a strong seller’s market.

A separate report by Kentwood Real Estate showed that 178 single-family luxury homes priced at least $1 million sold last month in the Denver area. That is a 19.5% jump from May 2017. That makes last month the best luxury home market for any May on record. Total dollar volume for luxury, single-family homes soared by 18% to $265 million on a year-over-year basis. Not only were there more luxury home sales, but they sold much faster. The average days on the market for a luxury home was 68 days, a whopping 34% drop from the 103 days it took to sell a luxury single-family home in May 2017, Kentwood reported.

Colorado Real Estate News

February 2018 Housing Market Report

February 2018 Housing Market ReportDenver, the most expensive housing market between the two coasts, hit an important milestone in February. For the first time ever, the average sold price of a single-family, detached home topped $500,000, at a record breaking $502,986. The year-over-year appreciation was up 11.78% from February 2017. The dramatic price increase came as the total sales volume posted a double-digit drop. The 2,002 single-family homes sold in February marked a 10.59% reduction in closings from a year earlier, DMAR data shows.

February 2018 Housing Market Report

Home prices are rising while at the same time mortgage rates are rising. Rates are now averaging close to 4.45% for a 30-year mortgage, while rates below 4% were available not long ago. Part of the reason home prices are going up so quickly, especially so early in the year, is because some people are bidding up home prices before they rise even more.

February 2018 Housing Market Report

Historically, when single-family home prices shot up, more consumers – especially first-time buyers – chose less expensive condos and townhomes. With an average price of $345,632, attached homes are significantly less expensive than single-family homes. However, condo prices have risen even more than single-family homes jumping 16.95% from February 2017.

February 2018 Housing Market Report

Another, often overlooked, reason the average price has risen so much is the mix of homes being closed. That is, more expensive homes selling in any given month can drive up the average price. Indeed, the $1 million and up price range showed the most improvement of any price strata from a year earlier. 102 homes priced at $1 million and over sold last month, a whopping 56.92% increase from the 65 luxury homes that traded hands in February 2017.

February 2018 Housing Market Report

At the end of February, there was a 7.83-month supply of unsold $1 million-plus homes on the market. That’s a 37.46% plunge from the 12.52-months of inventory for luxury homes a year ago. Overall, there was a 1.51 month supply of homes on the market, a slight increase from the 1.46 months of inventory on the market in February 2017. However, buyers will find slim pickings for homes priced between $200,000 and just under $500,000. In that price range, there is less than a month’s supply of unsold inventory.

February 2018 Housing Market Report

An uptick in the number of homes on the market, both on a month-to-month and a year-over-year basis is good news for prospective buyers. There were 4,084 houses, both single-family and attached, on the market at the end of February, a 5.56% increase from January and a 5.31% increase from February 2017. If inventory levels continue to rise, it could help to dampen the rising prices.

February 2018 Housing Market Report

Colorado Real Estate News

January 2018 Housing Market Report

January Housing Market ReportThe Denver-area housing market kicked off the new year with a historically low number of listings for any January on record. There were a mere 3,869 actively listed homes available for buyers in the first month of 2018, a 3.01% dip from a year earlier, according to a recent report by the Denver Metro Association of Realtors. The low inventory led to a double-digit percentage drop in sales, but also a double-digit increase in average sales price. The 2,736 single-family homes, town-homes, and condos that traded hands last month represented a 15.45% year-over-year drop and a whopping 36.22% drop from December, according to DMAR’s data. The number of sold homes equated to 70.7% of the active inventory.

January 2018 Housing Market Report

The brightest news from the report was that 4,085 homes were placed under contract in January, representing a 34.5% jump from December and a 9.76% percent increase from January 2017. There were almost as many homes placed under contract last month as the 4,182 new listings added to the market in January. The number of listings added to the market jumped an amazing 77.5% from December and marked a 9.69% increase from January 2017. Buyers in January were snapping up homes soon after they hit the market. In other words, “they are buying off the top,” rather than purchasing homes that had been sitting on the market.

January 2018 Housing Market Report

The first month of the year ended with a mere 1.48 months of inventory. That’s less than a 6.5-week supply of homes on the market. From homes priced from $200,000 to $499,999, there is less than a month’s supply of homes on the market. The low inventory coupled with relatively strong buyer demand, once again led to double-digit increases in sale prices on a year-over-year basis. The average price of all homes sold last month was $449,429. That represents an 11.84% increase from a year earlier and a 1.56% increase in demand. The average sales price of a single-family detached home in January was $490,932, almost a 10% increase from a year earlier.

January 2018 Housing Market Report

Condos and other attached homes rose even more. The average sold price of a condo in January was $354,613, a 22.7% increase from a year earlier. Despite the rising prices, the drop in the number of sales led to a 5.4% drop in total sales volume on a year-over-year basis. The sales volume for all homes was $1.229 billion in January, compared to $1.3 billion in the first month of 2017, according to DMAR.

January 2018 Housing Market Report

Colorado Real Estate News

Inventory Hits Record Low In October

The most frightening part of October could have quite possibly been the lack of inventory. The Denver Metro Association of Realtors reported a mere 6,312 actively listed single-family homes and condos on the market last month, an all-time low for an October. The active inventory was down 16.79% from September. While there is always a month-to-month drop this time of the year, last month marked a 49% larger percentage drop from September to October than in 2016.

On a year-over-year basis, the active inventory fell 6.22%, which was more in line with the 5.94% drop experienced during the same period last year. Fewer new listings hit the market last month, too. The 4,724 new listings marked a 19.2% drop from the 5,847 added to the market in September and a 3% drop from the number of new listings a year earlier.

The lack of inventory is not only frustrating for buyers, but it also is pushing up the prices of homes. The average price of all homes sold last month was $443,873, a 3.9% increase from September and an 11.85% jump from October 2016, according to DMAR. One good piece of news, however, is that the 5,411 homes placed under contract last month represented a 9.5% increase from September and a 9.9% increase from October 2016. The 4,450 sales, though, were down 9.75% and 7.9%, respectively, from September and a year earlier.

With so few homes on the market, it was not surprising that the months of inventory dropped. October ended with only 1.49-months of inventory, which is slightly less than 6.5 weeks. That is a 12.35% drop from the MOI in October 2016. The market was especially tight in the price band from $200,000 to just under $400,000, with less than a month’s supply available in October. The months of inventory, as it always is, was highest for homes priced at $1 million or more. There is a 6-month supply of homes in that price range, which is a 38.4% drop in the months of inventory in that category a year ago.

Interestingly, the luxury market is the one that arguably is the most balanced between buyers and sellers. Luxury homes, in fact, set a record for sales in an October last month. There were 158 homes priced at more than $1 million that traded hands last month, a 49% year-over-year jump and a 32.8% increase from September, DMAR’s statistics show. As we head into the holiday season, which will likely bring the normal, seasonal slowdown, the Denver market remains a strong seller’s market.

Colorado Real Estate News

Denver Home Prices Continue to Rise

The average price of a single-family home sold in the Denver area hasn’t hit $500,000 yet, but it’s about as close as it can get. The average price of a home sold in June hit a record $498,762, up 7.19% from a year earlier, according to the latest report from the Denver Metro Association of Realtors. The average price of a condo also hit a record at $333,800. And while one month does not make a trend, with a half years’ worth of data under our belt, 2017 is on target to set a record for sales volume. The metro area hit a record $11.86 billion in total home sales in the first half of the year, a 14.53% jump from the previous all-time high in 2016. In short, buyers have already paid $1.5 billion more for homes than they did in the first six months of last year.

For Sale Sign

Other notable metrics:

  • There were 7,059 active listings on the market at the end of June. The 3.87% year-over-year increase in listings is not as big of a jump in the supply as needed, but at least it is moving in the right direction.
  • At the half-way point of the year, 27,521 homes and condos have sold, a 5.81% improvement from last year.
  • There is a mere 5.6-weeks of inventory of single-family homes on the market, a 7% drop from inventory levels at the end of June of last year.
  • Denver, once again, was ranked No. 4 by Case-Shiller in its latest report. Denver booked an 8.2% appreciation rate in April, compared with 5.7% for the 20 big cities tracked by Case-Shiller. Only Seattle, Portland, and Dallas showed a bigger bump in home values than Denver.

The luxury market of homes priced at $1 million or more was especially strong in June. An analysis by Kentwood Real Estate, revealed that 172 single-family homes sold for at least $1 million, a record for June. Last month’s luxury home activity was up 25.5% from the 137 homes that traded hands in June 2016. The closed sales volume for luxury homes hit $258.985 million, also a record for June and 27.5% higher than in June 2016, Kentwood reports. In the first half of the year, a record 677 luxury single-family homes sold, Kentwood notes, a whopping 31.7% jump from 514 in the first half of last year. The closed dollar volume for luxury homes topped $1 billion for the first time in the first half of a year, a 30.7% jump from the $785.656 million sold in the first six months of last year.

With such a sizzling market, understandably you might think it is prudent to wait on the sidelines for the market to cool. While no one knows what’s in store for the Denver housing market, nothing indicates that demand will slow enough to make this a buyer’s market. A more likely scenario is that appreciation will slow a bit. But even a 5% uptick on a $500,000 home is still $25,000. So, if you are in the market to buy, contact a trusted real estate professional.

The longer you wait, the more you are likely to pay.

Colorado Real Estate News

Denver Area Housing Market Continues to Boom

While a record-breaking hail storm hammered parts of Denver last month, neither hail, rain or even a May snow could dampen the Denver-area housing market.Denver Area Housing Market

The average sale price of a single-family home sold last month approached $500,000. Per the Denver Metro Association of Realtors, that’s a 2.84% increase from April, and nearly 10% jump from a year earlier. When condos are thrown into the mix, the overall average price for all homes sold last month was $449,736, a 9.83% year-over-year increase.

Indeed, Denver was the fourth fastest appreciating market in the country, according to the most recent report by Case-Shiller. Only Dallas, Seattle, and Portland out-performed Denver. Case-Shiller also reported an 8.4% year-over-year increase in home values in March. The 20 cities tracked by Case-Shiller showed an overall gain of 5.2%. And mortgage rates during the Memorial Day holiday fell to 3.94%, the lowest point so far this year.

Last month, almost as many homes were sold as were available in the active inventory of unsold homes, according to DMAR. Despite rising prices, more sales took place in May than in either April or May of last year. There were 5,320 homes sales last month, an 11.46% increase from April and almost a 2% increase from a year earlier. There were 5,895 active listings on the market last month.

While a market the size of Denver could easily handle three times that many homes for sale, it was still nearly a 10% increase from April and close to an 8% increase in supply from May 2016. The increase in sales left the market with a 1.18-month supply of homes. In other words, if no additional homes were added to the market with the sales pace remaining the same, all the homes would be sold in a little over five weeks. Overall, the months-of-inventory was 4% lower than it was this time last year.

Some of the biggest drops in months-of-inventory occurred for the highest priced homes.

For homes priced at $1 million and above, there is a 5.83-month supply of inventory, a 21.8% drop from a year ago. Homes priced from $750,000 to just under $1 million, showed an even bigger drop in inventory levels with a 2.89-month supply of unsold homes in that price range, down 22.9% from a year earlier.

Not only did home prices rise last month, but they also sold faster. On average, a single-family home took only 27 days to sell. That is 10% faster than in April and 12.9% faster than in May 2016. Last month, buyers snapped up $2.4 billion in single-family homes, townhomes, and condos, a 14.65% increase from April and 11.92% year-over-year increase.

It appears no matter what surprises the weather might have for us this summer, the Denver-area housing market will continue to blossom.

Colorado Real Estate News

Denver Real Estate Market Shows No Sign Of Slowing Down

Denver Real Estate Market Shows No Sign Of Slowing DownLately, qualified home buyers in the Denver area have been delaying buying a home. They continue to rent in hopes that home prices will drop and they can snap up a relative bargain. But the latest data shows that isn’t happening. In April, as the spring buying season gathered steam, the average price of a single-family home in the Denver area hit a record $487,974. That is a 10.32% increase from April 2016. Not long ago, we were talking about the average price of a single-family home hitting $400,000. Now, an average price of $500,000 is appearing on the horizon.

What is happening in the Denver area is simply supply and demand. There are only 5,361 active listings on the market. An area the size of Denver could handle an inventory four times the current level. On the bright side, if you are house hunting the number of unsold homes on the market is no longer at a record low. In April, the inventory of homes and condos grew by 8.94% from March and 2.68% from the previous year. But the Denver area clearly remains a seller’s market, with only a 5.7-week supply of unsold homes.

The months of inventory would be even lower, if not for a statistical quirk regarding the lowest priced homes. There is a 3.33-month supply of homes priced below $100,000. But there are only 10 of them on the market, with three homes selling in that price range last month. At the other end of the spectrum, there was a 6.87-month supply of homes priced over $1 million in April, a 7.3 percent drop from March. A 7 percent change in one month is huge.

It’s a sign that savvy buyers who can afford the most expensive homes, are voting with their pocketbooks. In the first four months of the year, buyers have purchased a record $6.36 billion in single family homes and condos. That’s $536 million more than what was bought during the same period last year. This year 15,554 single-family homes and condos have traded hands, almost a 7 percent increase from the first four months of last year. To put that into perspective, that is more than all the owner-occupied houses in Littleton!

The market is telling us two things. First, it is a great time to be selling your house, with double-digit appreciation still taking place. Second, if you wait to buy a home, hoping that prices will fall, you probably will be disappointed.

Colorado Real Estate News

Active Listings Are on the Rise in the Denver Housing Market

Forget about March Madness. Last month was March Gladness, if you were a home buyer in the Denver market. In good news for homebuyers and Realtors, the number of active listings rose by 26.9% from February in March. While it’s not uncommon for the inventory to rise as the spring season kicks in, the increase was twice the 13.1% in the same period in 2016, according to data released by the Denver Metro Association of Realtors. The total number of homes on the market rose almost 10% from the active inventory in March of last year.

Still, with fewer than 5,000 total homes on the market last month there isn’t enough to meet demand in a bustling market the size of Denver. That is apparent in that the months of inventory stood at 1.21 months at the end of March, virtually unchanged from 1.23 months a year earlier. Yet, the increase of inventory bodes well for even more homes to hit the market later this spring and summer. In the first quarter, there are almost 10% more actively listed homes on the market than in the first three months of last year. It’s also important to note that more than 15,000 new listings hit the market in the first quarter of this year, almost 10 percent more than were added to the market between January and March of 2016.

One area that showed a big improvement is luxury homes, or those priced at $1 million or more. At this time last year, the market was saddled with almost a 10-month supply of luxury homes. Since then, the inventory of luxury homes has dropped 24.4% to 7.41 months. While a 24% change is a big drop, those shopping for high-end homes still have a lot of choices, compared to any other price point. In fact, a recent Kentwood Real Estate analysis of the luxury market showed 110 single-family homes traded hands last month, a record for any month of March. That marked a 66.7% jump from March 2016!

Meanwhile, the average sales price of all single-family, detached homes sold in March rose to $425,607. That’s an 8.82% increase from March 2016 and a 6.18% increase from February. The average price of a condo at $317,402, marked the first time in a March that the price topped $300,000. Condo prices are up 10.71% from a year earlier and on a month-to-month basis rose 7.26%. The total sales volume of all homes last month was $1.85 billion, a 9.73% increase from a year ago and a whopping 44.42% jump from the previous month. If you have been waiting for home prices to drop before you buy, reconsider that strategy.

The March and first quarter statistics show that even with a rising inventory, prices continue to rise, a testament to strong demand in a growing economy. If you wait to buy, you are likely to be faced with higher prices and higher interest rate.

Colorado Real Estate News

Denver Home Prices Still on the Rise

Thanksgiving may have come and gone, but if you are a Denver homeowner, you still have plenty to be thankful for. At the end of last month, the average price of a single-family home sold in the Denver area topped $440,000, the highest any October has ever seen. Home prices are almost 10 percent higher than they were a year ago, according to the most recent report by the Denver Metro Association of Realtors. Home prices were even up slightly from September, which is unusual, as they normally dip on a month-to-month basis this time of year for seasonal reasons.

So, what is driving these rising prices? Mortgage rates are partially to blame, which are still hovering at near-record lows at around 3.5 percent for a 30-year mortgage. No one knows if mortgage rates will rise, if the Federal Reserve raises its interest rates in December, as is widely anticipated. But there’s no denying that you can lock-in record-low rates today.

The low supply of homes is another factor driving up home prices.

Last month, there were only 6,731 active listings on the market, an all-time low for this time of year. To put that into perspective, 10 years ago there were almost 30,000 homes on the market. In October, there was only a 1.7-month supply of homes on the market. A year ago, the months-of-inventory was almost 9 percent higher.

There is an especially low supply of homes for homes priced below $400,000.

You will have the most options if you are in the market for a home priced at $1 million or more. In that case, there is almost a 10-month supply of homes. But even the luxury market is tighter than it was a year ago. In October 2015, there was almost a 1-year supply of unsold homes priced at $1 million or more.

Denver also is one of the fastest growing cities in the nation and many of the people moving here want to eventually own a home. Forbes Magazine, in fact, last month ranked Denver No. 1 Best Place for Business and Careers in 2016. Denver is especially attractive to tech savvy Millennials, many of whom want to eventually buy a home and put roots down here. That bodes well for increased home appreciation in the medium- and long-term. That is something to be thankful for, whether you own a home or plan to buy one.