Colorado Real Estate News

Home Prices Continue to Rise in Denver

Denver Home Prices Continue to RiseThe Denver-area housing market has never been tighter. According to the most recent report by the Denver Metro Association of Realtors, there were 3,989 active homes on the market in January. That is not only the lowest inventory level ever reported for a January, but also the fewest number of homes on the market ever. The record low inventory level resulted in a mere 1.41-month supply of unsold homes on the market last month. Here’s another way to look at it: if every home was sold and no new homes made it to the market, buyers would have no more homes to purchase in a mere six weeks.

Every price strata last month showed a drop in inventory levels from January 2017. Only homes priced at $1 million or more would arguably be considered a buyer’s market, with an inventory of nine months. However, even in that price range, there has been a year-over-year 14.3 percent drop in supply. For homes priced from $100,000 to just under $400,000, there is less than a one-month supply of inventory. Only homes priced between $750,000 and $999,999 would be considered one in balance between buyers and sellers, with about a 5.5 months inventory.

As expected, with such a low supply of homes on the market, home prices continue to rise. The average price of all homes sold last month topped $400,000, rising 8.35 percent to $402,979. The average price of a single-family home rose even more. Single-family home prices jumped 9.25 percent to $448,374. Overall, the sales volume of all homes last month topped $1.2 billion, an 8.31 percent increase from a year earlier.

As winter begins to wind down, with the confluence of a record low inventory and rising prices, now is a great time to call a real estate professional and put your home on the market. It’s an especially great time to sell your home, as mortgage rates remain low. With a 30-year fixed-rate hovering around 4.2 percent, it’s an increase from the very bottom but still extremely low by historic standards.

Colorado Real Estate News

Denver is Poised to Remain a Seller’s Market

Denver Real Estate | Monthly Stats This upcoming fall is poised to bring more to Denver than just cooler weather and brightly colored Aspen trees. It is shaping up to be a golden opportunity for home buyers and sellers alike.

Why is that, you might ask. According to the latest report by the Denver Metro Association of Realtors, at the end of July the average home price was down 2.3% from June to $366,419, which is a typical seasonal month-to-month dip. If history is any indicator, the trend is likely to continue. At the same time, there are currently 7,470 homes on the market. This is virtually unchanged from a year earlier, but up 10% from June.

Meanwhile, with a Presidential election around the corner, it’s almost certain that mortgage rates will remain at historical lows through November. Even jumbo loans, those above the conforming limits of $458,850, can be locked in for around 3.25%. And 15-year loans can be found below 3%.

Crazy low mortgage rates, lower home prices, and more homes to choose from is a trifecta of welcome news for home buyers. But make no mistake, Denver remains a seller’s market. At the end of July, there was only a 7-week inventory of unsold homes on the market, DMAR reports. That number is slightly better than the 6-week supply just a year earlier. But even if the months of inventory doubled, it still would be far from a balanced market with five to six months’ inventory.

The market is especially tight in the $200,000 to $299,999 price strata, which only has a 3-week supply. Move up a bracket to the $300,000 to $399,999 price range, and there is only a 4-week inventory of homes. The only market that is near “normal,” is homes priced at $1 million or more. And even in that price range, there is only a 7.6-month supply of unsold homes.

The flip-side of all of this is that fall will be a great time to sell your home. The inventory, for example, is less than half of what it has been historically. Many people who were outbid for homes this spring and summer will be eager to make a deal this fall.