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

Spring Brings Seasonal Simmer to Denver Real Estate Market

CRESTMOOR10Real Estate Heated Up Amidst Cold Spells

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

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

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

Not Everything Was Popping Up like Daffodils

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

Luxury Market is Ready for the Spring Season

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

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

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

 

Colorado Real Estate News

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 Real Estate Market Experiences a Build-Up Of Inventory

September Market Stats 2017In September, Denver-area home sales slowed more than the typical seasonal slowdown. This may be a sign that if you want to close the sale of your home by the end of the year, you will need to make some adjustments.

There were 4,427 total home sales in September, an unusually large 21.6% drop from August and a 15.6% drop from September 2016, according to data from the Denver Metro Association of Realtors. By comparison, September 2016 showed a more typical, seasonal drop of 11% and 5.5% from the previous August and September 2015, respectively. Home sales showed big month-to-month drops across the board. The biggest price band drop was for single-family homes priced at $1 million or more, which experienced a 25.38% slowdown from August. “September activity in the single-family luxury market fell like the autumn temperatures resulting in a buildup of inventory,” according to Jill Schafer, Kentwood Real Estate broker and a member of the DMAR Market Trends Committee.

At the same time, luxury homes fared very well when compared to a year earlier. The sales of the most expensive homes soared 24.36% last month from September 2016. And homes priced from $750,000 to $999,999, showed the largest year-over-year, increase of any price band, jumping by 31.24%. On a month-to-month basis, single-family priced from $500,000 to just under $750,000, showed the second largest slowdown, with sales falling 24.34% from August.  In fact, on a month-to-month comparison, the only price range that showed an increase was for single-family homes priced between $100,000 to $199,999. While homes in that price range jumped 18%, only 26 homes traded hands, as there are few homes available priced below $200,000.

If you are house-hunting, now is a great time to consider buying a condominium or town-home. There were 1,893 attached homes on the market in September, a 9.68% increase from August and a whopping 19.96% jump from September 2016. The average sold price of a condo last month was $313,096, almost $163,000 less than the $429,597 average price of a single-family home sold in September. The sale price of both condos and single-family homes were down slightly from August, but were up 8.5% for single-family homes and up 9.6% for condos. Despite the slowing sales, there was only a 1.8-month supply of single-family homes on the market last month and a 1.5-month supply of condos. A market balanced between buyers and sellers has 5-to-7 months of inventory, so Denver is still a strong seller’s market.

Regardless of the slowdown last month, the year still is slightly ahead of where it was in 2016. In the first three quarters of this year, there have been 43,558 total closings, for a record sales volume of $18.85 billion. In terms of year-to-date sales, the market is 3.22% ahead of where it was last year. In terms of dollar volume, the market is 11.82% ahead of where it was this time last year.

Colorado Real Estate News

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

2016 Marks Historic Event for Denver’s Real Estate Market

The beginning of 2016 has marked a historic event in Denver’s real estate market history. For the first time ever, there are fewer than 4,000 unsold homes on the Denver-area market. The Denver Metro Association of Realtors recently announced there were a mere 3,963 unsold homes at the end of February, an all-time low. This record low comes just as the spring home-selling season kicks off.

These record low numbers also reversed a trend that started last spring of inventory levels slowly climbing on a year-over-year basis. That means this spring, you can expect to see another frenzied market, with buyers bidding up the prices of homes.

Yet, digging deeper, it’s important to realize that the shortage of homes isn’t spread equally across all price ranges. In fact, February ended up with a 7-week supply of unsold homes, compared with a 5.2-week supply in February 2014. That might not seem like much, but it’s a 37.6% difference!

Still, it clearly remains a seller’s market, especially at the lower price points. There is less than a two-week supply of homes priced from $200,000 to just under $300,000, according to DMAR’s data. And only slightly over a two-week inventory of homes priced from $300,000 to $399,999.

In contrast, it’s a bit more of a buyer’s market toward the upper end with a 6.56-month supply of unsold homes priced from $750,000 to $999,999. Last year, there was about a 4-month supply of unsold homes in that price range. Buyers at the $1 million+ price point have more bargaining power with an 11.5-month supply of unsold homes.

Yet, that price range also has seen the biggest percentage drop in supply. The supply for the most expensive homes has dropped 45 percent from a year ago, when there was a 21-month supply of unsold homes at the top of the market.

Still, whatever the price range, one thing is clear. Now is a great time to call a real estate agent to list your home.