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

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

Home Prices Appreciate at A Slower Pace in Denver

Home Prices | Denver Real Estate

This past month, many people celebrated Independence Day by watching fireworks, enjoying a barbecue, or perhaps escaping to the mountains. This year, Denver’s continued robust housing market was another cause for celebration. The Denver Metro Association of Realtors released its latest report on home sales activity in the metro area on the 4th of July. The report found the local housing market remains strong. While home prices are appreciating at a slower pace than in recent years. That is good news for prospective buyers, who on average are no longer facing double-digit price increases. At the same time, sellers are still enjoying solid increases in the value of their homes.

The average price of a single-family home sold last month set a new record of $539,934. That is less than a 1% increase from May and an 8.75% increase from June 2017. When you throw condos and town homes into the mix, the average price of all homes hit a record of $492,029, up slightly more than 1% from May and an 8.8% increase on a year-over-year basis.

Buyers also have more homes to choose from in June than they did in May. There were 7,436 active listings on the market in June, up 15.52% from May. Such a big percentage increase from May is not unusual. This time in 2017 and 2016, for example, the month-to-month percentage jumps were about 20% and 24%, respectively. Year-over-year, the number of active listings increased by 5.34%. The last time more active listings were on the market was at the end of June 2014. At that time, there were 7,791 homes on the market.

The number of homes placed under contract also picked up a bit in June. There were 6,043 homes placed under contract in June, a 2.46% improvement from May and a similar increase of 2.55% on a year-over-year basis. In the first half of the year, 37,311 new listings came on the market. That’s a 1.45% increase from the 36,779 new listings in the first six months of 2017.

Sales activity in the first half of the year was not bad considering rising home prices and interest rates. There were 27,228 total homes sales in the first six months of 2018. Which is a 3% drop from total sales in the first half of 2017. The average sales price of all homes in the first half of the year was $476,100, a 10.47% percent jump from the average sales price in the first half of last year. Despite the dip in sales, thanks to higher prices, the total sales volume in the first six months of the year hit a record $12.96 billion, a 7.08% increase from $12.1 billion in the first half of 2017.

Yet, the market remains tight. There was only a 1.43-month of inventory of single-family homes available to buyers at the end of June. That translates to slightly more than 6-week supply, which, believe it or not, is almost an 11% increase in MOI from June 2016. For homes priced from $200,000 to just under $400,000, there was less than a one-month supply of homes on the market. The luxury housing market is the most balanced of all markets, with a 4.64-months of inventory of homes priced at $1 million or more. That is about a 17% drop in the MOI for luxury homes.

Kentwood Real Estate broker and DMAR Markets Trend Committee member Jill Schafer described the luxury market as “astounding.” In the first six months of the year, a record 978 luxury single-family homes were sold, a 32.52% increase from the same period in 2017. The sales volume of luxury single-family jumped 32.6% from a year earlier to $1.486 billion. The total sales volume for luxury hit $1.63 billion, when including luxury condos.

Colorado Real Estate News

Home Prices In Denver Set Another Record

Property value or real estate sales evolutionTalk about March madness. Last month, home prices in Denver set yet another record. According to the Denver Metro Association, the average price of a single-family home sold in March rose to $522,277. That is a 3.77% increase from February, which marked the first time the average price topped $500,000. And it was up 11.7% from a year earlier. These record prices are hitting the market just as the spring buying season begins to heat up.

Denver March Market Stats 

The good news is that prospective house-hunters will have more homes to choose from than in February. 6,335 new listings hit the market last month, a 36.4% jump from the new listing that came on the market in February. And buyers are out there. Some 5,674 homes were placed under contract in March, a robust 34.52% increase from February and a 4.76% increase on a year-over-year basis. Homes also sold faster in March than in February. The average days on the market was 44 in March, a 15% improvement from 51 days in February.

Denver March Market Stats

Still, there is no doubt the market still suffers from a longtime shortage of homes for sale. Currently, there is only a 1.16-month inventory of unsold homes on the market. That is a mere five weeks. There is less than a month’s inventory of homes priced from $200,000 to just below $500,000. Even the luxury market ($1 million +) has only a 5-month supply. Normally, that would be considered a balanced market between buyers and sellers. In fact, the luxury market continues to be the strongest. There were 163 luxury home sales in March, a 43% jump from February and a 20.74% increase from March 2017.

Denver March Market Stats 

“The luxury market ended the first quarter like Villanova: the big winner!” exclaimed Jill Schafer, a broker with Kentwood Real Estate and a member of the DMAR Market Trends Committee.

Denver March Market Stats 

Meanwhile, if you look at the entire first quarter data, buyers have purchased 10,577 single-family homes and condos, a 6% decline from the first three months of 2017. Because of rising prices, the sales volume of all homes was a record $4.85 billion in the first quarter, a 4.7% increase from the first quarter of 2017. With sky high prices and strong demand, this spring is a great time to list your home!

Denver March Market Stats 

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.

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Home Sales in the Denver-Area Show Typical Seasonal Slowdown

Denver August Home SalesEvery market has a season. The Denver housing market is no different. In August, home sales in the Denver area showed a typical seasonal slowdown. With a market as hot as Denver, any cooling can seem like a bigger deal than it is. There were 5,324 single-family and condo/townhome sales in August, a 5.8% drop from July, according to the most recent report by the Denver Metro Association of Realtors. That is fairly typical month-over-month drop this time of the year and is a long way from a meltdown.

Home sales did fall 8.6% from August 2016. However, if you dig into the last year’s statistics, the year-over-year drop this year isn’t surprising. That’s because in August 2016, sales bucked the normal trend and actually rose a bit from July. Also notable is that the average price of all homes sold last month stood at $434,478. That is a 2.75% dip from July, but a record for August. August 2016, in fact, was the first August on record where the average price of all homes sold topped $400,000.

By the numbers, all home prices are up 8.17% from August 2016. And that’s a time when the inflation rate remains below 2%. Another way to look at is that home prices have been rising at 4 times the inflation rates. The good news is, the average price of a single-family home was $483,574, a record for an August, but down 2.21% from July. The average price of a home likely will not top $500,000, a milestone that seemed likely earlier this year.

There were 7,360 homes on the market last month, basically flat from July and up less than a half percent from a year earlier. August of last year marked the lowest inventory of any August on record and last month didn’t give house hunters many more homes to choose from.

What is interesting is that the active inventory of attached homes, mostly townhomes, surged in August. There were 1,726 attached homes on the market last month, a 4.7% increase from July and a whopping 17.2% from July 2016. So, if you want to buy a townhome you have many more choices than a year ago. The single-family inventory of 5,634 homes, dropped 1.2% from July and 3.76% from August 2016. By contrast, the inventory of single-family homes fell 1.21% from July and was down 3.76% from August of last year.

Colorado Real Estate News

Denver Home Supplies Dip to Record Low

Real Estate | Low Supply

Just as the market is poised to enter the strong spring sales season, the supply of homes in the Denver area has dipped to a record low. There were a mere 3,878 unsold homes on the market in February, according to the latest report by the Denver Metro Association of Realtors. That is a 2.78 percent drop from the previous low-water mark, which was set in January. With demand still strong, the low supply of homes has left the market with only a 1.45-month supply of unsold single-family homes. That equates to a little more than a 6-week supply of homes on the market, a 12.4 percent drop from the months of inventory available a year earlier.

The shortage of homes to buy is especially pronounced for homes priced from $200,000 to just under $400,000. There is less than a two-week supply available for homes priced from $200,000 to $299,999. Move up one tier to $300,000 to $399,999, there is slightly more than two weeks’ worth of inventory on the market. The condo market is even tighter. There was only a 1.1-month supply of unsold condominiums on the market last month, and there is less than a two-week supply of condos priced between $100,000 and just under $300,000.

One piece of positive news, however, is that more new listings are hitting the market. There were 4,561 listings for single-family homes and condos added to the market in February, almost a 20 percent increase from January, according to DMAR. New listings also were up 6.8 percent from February 2016. Of those new listings, 71 percent, or 3,247, were for single-family homes. The number of homes placed under contract picked up in February, both on a month-to-month basis, as well as year-over-year. There were 4,350 homes placed under contract in February, a 17.8 percent jump from January and almost a 5 percent improvement from a year earlier.

The increase in under contracts came, even as home prices continue to rise. The average price of all homes in February was $402,516, up slightly from January, but a 7.8 percent increase from a year earlier. The average price of a single-family home, at $447,838, showed a similar trend: barely moving up from January, but rising 8.6 percent from February 2017.

With fewer homes to choose from and strong demand causing prices to rise, this spring is sure to be a great time to sell your home.