Colorado Real Estate News

Real Estate Market Trends

Record-home Sales in July in Metro Denver

Homebuyers in metro Denver were not slowed by the pandemic in July as June’s record number of pending sales converted to an all-time high in the number of closings in any month on record.

Average Single-family Home Price Catapulted to Over $600,000

While record-home sales was predicted, no one could have predicted the significant jump in prices. Pent-up demand from the COVID-19 home-showing shutdown and the continued lack of choices forced homebuyers to bid against each other. Many sellers collected multiple offers at or above asking price. That competition catapulted the average single-family home price to $601,863, which is 7.7% higher than June and 10% percent higher than July 2019. The median closed price was also a record high for any month at $460,140.

One of the Strongest Months for Single-family Luxury Home Market

In the luxury housing market, there were two different perspectives depending on if you had single-family or condo homes.

The single-family Luxury Market, homes priced $1 million+, had one of its strongest months in almost every statistical category. Compared to last year, there was a 53% increase in new listings, pending transactions jumped 105% from 195 to 399, the amount of closed deals in July increased 61% and both the median and average days in MLS decreased from the previous year.

The lack of housing inventory puts the advantage in the sellers’ hands in all price ranges except for condos priced above $1 million. Even though the number of closed sales of luxury condos was up 50% month over month, it is still the softest segment of the market and homebuyers have the upper hand in negotiating.

While the luxury condo market had a relatively strong month compared to that of the previous year, it is clear that the demand for condos was not nearly as strong in July. People have spent more time in their homes than they are accustomed and there is a growing trend of wanting more space.

*Written August 7, 2020. Updates may be available after this date.

Colorado Real Estate News

Is it a Seller’s Market for Luxury Homes?

Sellers MarketIs it a Seller’s Market for Luxury Homes?

Has the pendulum officially swung in favor of a buyer’s market for luxury homes priced $1 million and up?

In January, there was 7.65 months of housing inventory for the luxury segment; so, technically speaking, the answer is yes. The industry’s standard definition of a seller’s market is six months or less of inventory currently available, and a buyer’s market is seven months or more.

However, coining the luxury market as a buyer’s market comes with a caveat as it is not so ‘black and white.’ The luxury market in sales velocity is very dependent on the type of property, neighborhood, year the home was built, how updated it is, and so forth.

In this high-end price segment, the Denver area has only just gone over seven months. And when you look at other factors, like days on market, conditions to sell are still great. From 2016 to 2018, the median days on market has ranged from 71 to 84 in the luxury segment. Last month, median days on market was at 41!

So, home sellers must be cautioned not to despair that they are no longer in a “seller’s market,” they just need to manage expectations and price their home right. Home sellers are still in a robust market, in a city with good in-migration, and a great lifestyle.

More Housing Choices is Good for Homebuyers and Sellers

In January, the number of new residential listings for all prices ranges increased 109.7 percent from December to 4,821, an increase of 13.6 percent year over year. Active listings were up just 5.45 percent from the month prior, and up 52 percent compared to 2018’s record-low January reaching 5,881. For comparison, the number of active listings is still significantly below the historic average in the month of January of 13,469 (1985-2018).

So, even though the Denver area is still a seller’s market in most price ranges, there’s no doubt this is the best time to buy in a long time. With more choices and interest rates lower than expected, homebuyers placed more contracts in January compared to December, so more sales are expected.

While buyers are taking advantage of their housing choices, home sellers are still seeing appreciation with the average sold price up from $448,132 in January 2018 to $461,101 in January 2019.

All in all, now is a good time for buyers and sellers.

Colorado Real Estate News

2019 Promises Lots of Opportunity in the Denver Real Estate Market

Opportunities in the Denver Real Estate MarketHomebuyers and sellers are seeing a lot of opportunity in the metro-Denver real estate market as of late.

Since 2012, homeowners have received incredible appreciation. For those considering selling their home to move-up or to tap into their equity, now is an ideal time to do so. In addition to being in the midst of a seasonal slowdown, over the last few months, the market has been shifting toward balance creating conditions that benefit both buyers and sellers. So, what exactly are these conditions?

More Home Choices for Buyers and Continued Strong Home Prices for Sellers

In November, year to date, housing inventory has increased 46.76 percent compared to last year in the residential market (single-family and condos), but was down 11.82 percent from last month. Those figures reflect that fewer homes sold in the Denver area in November, down 17.27 percent from October, and that dropped the number of sales year to date to less than any in the past three years. For perspective, though, the market has been in the fast lane for several years and is simply shifting to more neutral conditions.

The low months of housing inventory will keep homes prices strong. While the average sold price of $462,344 was down 6.3 percent from the peak price mid-year, it is up 6.47 percent year over year.

Seller’s Market for Homes Priced Under $1 Million

Single-family homes priced under $1 million had three months or less of inventory at the end of November, showing sellers still had control in the bulk of the market. Anything under five months is considered a seller’s market and over six months is a buyer’s market.

Buyer’s Market for Home Priced Over $1 Million

The luxury single-family home segment is sitting at 7.22 months of inventory, and the luxury condo market is sitting at 6.67 months. This is an important indicator as this shows that the ‘luxury market’ (homes priced at $1 million and greater) is officially a buyer’s market.

Overall, 2019 promises to be another strong year for both homebuyers and sellers in the Denver-area. So, rest up this holiday season and get ready for a fresh start come January.

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.