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.

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

November Housing Market Report

November Housing Market ReportDenver boasted record temperatures in November, even reaching an astonishing 81 degrees one day. Alas, the housing market sales did not see the same trend. The market cooled more than the typical seasonal slowdown. Why? Because there were a record low number of homes available to purchase for a November last month.

November Housing Market Report

There were 5,131 single-family homes, condos, and town-homes actively listed in November, according to the Denver Metro Association of Realtors. That marked a 7.8% drop on a year-over-year basis. For comparison, November 2016 showed only a 2.08% drop from November 2015. Inventory levels fell 18.71% from October, although surprisingly, that wasn’t much bigger than the 17.37% month-to-month drop the market experienced last year. Overall, there was only a 1.27-month supply of unsold homes on the market in November, a mere 5.5 weeks of homes on the market. That’s 13.6% lower than in November 2016.

November Housing Market Report

The lack of inventory is especially severe for homes priced from $100,000 to just under $500,000. In that price band, there is less than a month’s worth of inventory. For homes priced from $200,000 to $299,999, there is less than a 2-weeks supply – 1.7 weeks of inventory, to be exact. It doesn’t get much better for homes priced from $300,000 to $399,999, where there is a 2.17-week supply of unsold homes. Even for homes priced at $1 million or more, there is only 6.35 months of inventory, which is a 15.6% drop from the inventory level a year ago.

November Housing Market Report

The low supply and strong demand continue to drive up home prices. The average price of a single-family home sold last month was $479,192, up 8.68% from November of last year. Rising prices resulted in a record $23.116 billion in total home sales in the first 11 months of the year. That is $886 million more than all the homes sold last year, which was a record year for home sales dollar volume.

November 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

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-Area Housing Market Continues to Heat Up

Denver Real Estate | Property Values

It’s hard to find any kinks in the Denver-area home selling market. A recent report by the Denver Metro Association of Realtors shows the market was nearly bulletproof in April.

Home prices were once again in record territory, showing double-digit gains on a year over year basis. Homes are selling fast, spending an average of just 31 days on the market before being placed under contract. With a mere 5,221 unsold homes on the market, there is less than a 6-week supply of inventory. While that is about 4% more than a year earlier, the truth is that market could easily handle 15,000 or 20,000 homes.

The market also is experiencing its typical, seasonal pick up, as 12% more homes hit the market in April than in March. And 9% more homes were placed under contract last month than in the previous month.

You may have heard about a recent media report stating that 23% of homes placed under contract last month failed to close. But don’t worry.

Many Realtors find that it’s not unusual for 10% to 20% of homes placed under fail to close. So while 23% sounds ominous, it’s probably nothing out of the ordinary. What the report did not state is that most, if not all, of these homes were quickly snapped up by another eager buyer.

One veteran broker put it this way: “I can say with a fair amount of certainty, that 100% of those homes were sold to the next person in line, within a day or two.”

After all, in a market where it’s not uncommon to have 15 or more people bidding on a home, if the first deal falls through, your broker’s response is simple: “Next.”