Colorado Real Estate News

Real Estate Northern Colorado Market Trends

The Acceleration and Deceleration of Days on Market

In April of 2021, Berthoud’s attached housing market saw the largest year-over-year decrease in days on market of 83.54 percent, ending at 26 days. In May of 2021, Berthoud saw the largest year-over-year increase in days on market of 97.87 percent, ending at 93 days in 2021. As these factors fluctuate, speak with an experienced broker to ensure you have the most current statistics for an informed decision.

Berthoud’s Disparity in Close-to-List Price

Buyers seeking attached properties in Berthoud had to pay, on average, 105.60 percent of the original list price to secure their home. As the largest average close-to-list price for attached homes across northern Colorado, Berthoud’s close-to-list price also saw the largest year-over-year increase of 10.92 percent! Simultaneously, detached properties in Berthoud saw the lowest average close-to-list price across northern Colorado’s detached market at 103.00 percent and had the smallest increase of only 3.00 percent year over year.

Homebuyers Are Attached to the Attached

Attached homes in Timnath saw a closed sales increase of 250 percent and a closed sales volume increase of 280.51 percent year over year. With the average sales price only increasing by 8.72 percent year over year, homebuyers are open to living in attached properties as they can find opportunities in this market for fewer dollars compared to Timnath’s detached average sales price increase of 41.69 percent.

Berthoud’s attached housing market skyrocketed in 2021, with a closed sales increase of 600.00 percent and a closed sales volume increase of 936.62 percent! This massive shift came with a large dollar sign as the average sales price increased by 48.09 percent year over year.

Windsor and Fort Collins were the only two areas in northern Colorado without a year-over-year closed sales increase of over 100 percent for attached homes, meaning there may be more opportunities to secure housing in these regions.

Colorado Real Estate News

Northern Colorado Real Estate Market Trends

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Home Prices Increase Except in Berthoud

The average sales prices across northern Colorado continue to skyrocket for attached and detached homes except in Berthoud, which saw a year-over-year decrease of 0.69 percent in the average sales price of detached houses and a year-over-year decline of 7.49 percent in attached homes. Those looking to buy for cheaper may find opportunities in this area.

The Demand for Boulder

The intimate atmosphere in Boulder is still extremely attractive, as shown by the most significant increase in closed sales and closed sales volume year over year. Since April 2020, detached homes saw a closed sales increase of 144.23 percent and a closed sales volume increase of 316.56 percent, and attached properties experienced a closed sales increase of 120.51 percent and a closed sales volume increase of 142.74 percent. 

Attached Properties in Windsor Are Lacking Love

Windsor saw the largest disparity in sales of detached and attached homes as the closed sales and closed sales volume of detached properties increased by 79.10 percent and 89.47 percent year over year, respectively, while closed sales and closed sales volume of attached homes decreased by 50 percent and 46.94 percent year over year, respectively. Despite the sizable drop in purchases of attached properties, prices haven’t lowered, as the average sales price increased by 6.11 percent and detached homes’ average sales price increased by 5.79 percent.

Homes Are Flying off the Shelves Faster

Berthoud saw the most drastic drop in average days on market with an 83.54 percent reduction for attached properties and decreased to the shortest timeframe for average days on market across northern Colorado at 26 days in April 2021 from 158 days in April 2020. Fort Collins has the lowest average days on market for detached homes, with a 44.78 percent reduction, going from 67 days in April 2020 to 37 days in April 2021. Homebuyers need to make quick decisions to compete in these fast-paced markets.

*Written May 25, 2021. Updates may be available after this date.

Colorado Real Estate News

Denver Real Estate Market Trends

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April 2021 Showed Blatant­­ Hyper-Demand In the Residential Housing Industry

The market continues to result in historic low months-end inventory, even with months-end active inventory increasing by 35.03 percent. Altogether, there were still only 2,594 active properties at the end of the month, representing the lowest April on record and 48.38 percent less inventory.

The Importance of One Year Ago

April 2020 was a month of confusion and uncertainty for the world. The ebbs and flow of being an “essential” worker were reflected in new listings last year, which were down 43.02 percent compared to April of this year. Since last year, the market has seen a steady rise in competition and therefore prices have as well. With only two weeks of inventory, year-over-year appreciation continues to be staggering for the market while also bringing homesellers inevitably great returns, increasing 24.20 percent in April. 

The Luxury Market Has Experienced the Most Growth

In 2018, 2019 and 2020, year-to-date closed sales of properties over $1 million were 649, 654 and 661, respectively. So far, in 2021, there have been 1,353 closed sales, more than double the number of the past three years. The median days in MLS for the Luxury Market was seven, down from 23 in 2020, 22 in 2019, 32 in 2018 and 48 in 2017. 

Where We Stand With Inventory Lows

Historically, the market has seen annual inventory reach its low point in February and March, followed by increased listing activity until it hits inventory peak in August and September. The Luxury Market appears to follow the trend with 28.82 percent more new listings in April than March, showing that it may be possible for buyers who outlast the competition fatigue to find themselves with more options than they have seen in the past few months. If so, with only one month of inventory for attached homes and 1.97 months for attached homes, buyers will need to keep vigilant. 

*Written May 10, 2021. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

March 2021 Depicts an Emotional Market in the Greater Denver Metro Housing Area

With nearly every statistic in the report justifying how much competition there is for buyers, the market can visibly observe how far buyers are willing to take their offers in order to secure a home.

Whether Looking at Detached or Attached Properties, It is a Strong Seller’s Market Across the Board

Year-over-year appreciation is at 15.26 percent from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.90 percent from $551,542. On par with recent months, median days in the MLS went down to four, while close-price-to-list-price ratio went up to 103.32 percent.

New Listings in the Luxury Market Are Also Unable To Keep Up With Buyer Demand

Reports show that as prices and appreciation continue to soar, more homes cross the threshold into the Luxury Market as a result.

Sales Volume for the Attached Segment of the Luxury Market Is Up Substantially

62.63 percent year-over-year to $64,182,709 and up 63.56 percent month-over-month from last month’s $39,240,156. As volume has gone up, median days in MLS has fallen from 27 days last year and even a whopping 35 days in February to only seven days in the month of March.

New Detached Listings Increased, Barely Keeping Pace With the Pending Sales

Listing increased 28.03 percent with 402 new listings, up from 314 last month. This barely kept pace with the pending sales topping out at 399, a 26.27 percent increase month over month. As a result, sales volume was also up month-over-month 57.43 percent reflecting $558,253,910 at month-end.

In a Highly Emotional Market, One Must Understand How Much Competition Is Out There

Instead of using past sales as an indicator, one must also understand how much competition one has when submitting an offer. The data is a small piece of the puzzle. The bigger question is what are buyers willing to offer to beat out your competitors?

Colorado Real Estate News

Real Estate Market Trends

February 2021 Depicts an Icy-Hot Spring Market With Buyer Demand on Fire.

The Greater Denver Metro housing market proved that the underlying theme of this market is speed: the speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating. 

The Gap for Detached Properties Over Attached Properties Shrank in February. 

While many metrics still show that detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time. The increased demand for attached properties propelled the market to an average close price of $401,552. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.

Competition Remains Incredibly High. 

The report confirms that with median days in the MLS at five, close-price-to-list-price ratio at 101.90 percent and months of inventory at 0.55, competition remains exhaustive. With properties frequently going over asking price, full appraisal gap waiver appreciation continues to rise. Savviness, creativity, knowledge and guts are all components that will help buyers move towards a path of homeownership in this market.  

The Luxury Market Shows Interesting Trends. 

Last month, DMAR reported that the luxury detached market alone closed on 206 homes, a 10.75 percent increase in this category from last month and a 46.10 percent improvement from last year. More buyers are ready to purchase property over $1 million than the market saw in 2020 and single-family home sellers are enjoying a more crowded and hotter marketplace. While less competitive than other market segments, it remains high with February’s close-price-to-list-price ratio at 97.63 percent.  

*Written March 10, 2021. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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January 2021 Presented Brand New (Unsurprising) All-Time Inventory Lows
In January, the Greater Denver Metro housing market again broke a new inventory low with only 2,316 total active listings on the market, translating into an inventory shortage and an opportunity for appreciation to accelerate. 

Single-Family Attached and Detached Homes Also Sealed in Record Prices
Single-family detached properties hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family homesellers saw a 101.03 percent close-to-list-price in January and a drop to five days in the MLS, down from six last month and 24 days last year. Overall, the drive in demand has been proportionally higher for single-family detached properties than attached properties, explaining why the market is currently sitting with historic-low inventory for single-family detached properties.

2021 Shows No Slowing Down for the Luxury Market
Meanwhile, new listings for the Luxury Market jumped a little from one month ago at 2.22 months of inventory in detached luxury homes and 3.65 for attached luxury homes. 

Even with less inventory year-over-year, the market still saw an 85.71 percent increase in closed attached homes and a 70.19 percent increase in closed detached homes. In January, the luxury residential market was up 85.16 percent year-over-year for sales volume of $335,859,100, up from $181,393,127 from one year ago. The detached luxury sales volume was up 90.11 percent, and the attached was up 48.36 percent from one year ago.  

This Month’s Report Confirms a 2021 Seller’s Market
As long as interest rates continue to remain low and inventory scarce, there will continue to be multiple buyers for every appropriately priced house. Sellers across the state will continue to have the opportunity to navigate through multiple offers and differing terms of their choice, ultimately choosing one contract while disappointing several others.

*Written February 14, 2021. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

2020 Presented Historic Sales Volume in the Denver Metro Real Estate Market

In December, the Denver housing market continued to show buyer resiliency in pursuing homeownership. For the first time ever, there were 62,985 homes purchased throughout the year, 6.95 percent more than 2019.

According to Steve Danyliw, past Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®, in 1990 the Denver real estate market closed only 25,619 homes, which means in 2020 the market closed 145.9 percent more homes. Over the last 31 years, home prices continue to see robust growth with the average price increasing a staggering 457 percent.

Don’t Count Out Ultra-Low Mortgage Rates

Despite the growth in average price, Lawrence Yun, Chief Economic and Senior Vice President of Research at the National Association of REALTORS®, added that buyers should focus on the current low mortgage rates, which mean the Denver area is actually more affordable now than a year earlier even though home prices rose 14 percent. The 30-year fixed rate has dropped more than one percentage point over the past 12 months and is hovering into record lows.

Inventory Is Unsurprisingly Still Low

December presented another historically low month of inventory with 2,541 properties on the market: the first time Denver has seen under 3,000 active properties.

New Listings for Luxury Homes Climb

However, new listings for the Luxury Market were up 14.65 percent compared to 2019, with pending sales climbing to 36.50 percent and closed sales reaching 34.74 percent.

Meanwhile, the Classic Market Stays Competitive

With the average days in MLS at 20 days, 23.08 percent lower than 2019, and median days in MLS at only six days, 45.45 percent lower than 2019, the Classic Market remains strong. 31,913 new residential listings hit the market in 2020, which is 2,255 fewer and 6.60 percent less than the 34,168 that came available in 2019. 

*Written January 8, 2021. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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Denver Metro Real Estate Market Continues to Boost All-Time Records.
November continued to emphasize the desirability of a home in COVID-19, and the market shattered records with median days in MLS for detached single-family homes at a speedy five days, representing a tie for the lowest number on record. Active listings for attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively.

Low Inventory Is …  Low.
While the holiday months generally see a decline in inventory, this November MOI hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver had 1,755 houses currently available for sale, representing just .51 months of inventory.

Change of Pace for Luxury Homes Inventory.
While typically, the most active amount of inventory is the $500,000 – $750,000 price range, this November the dial turned and it was homes priced over a million dollars. Presently, there are 561 homes on the market priced at over a million dollars, almost one-third of the overall inventory. New listings for the Luxury Market were up 17.09 percent compared to last year.

Classic Market Becomes Most Competitive.
MOI for detached homes in the Classic Market dropped to just over .27, arguably making the Classic Market the most competitive segment of the market. For detached and attached homes in the Classic Market, there were 1,781 new listings recorded in November, which was a 35.70 percent drop from October and a 2.64 percent drop from last year. The 2,319 pending sales in November outpaced the number of new listings, furthering the lack of inventory this month and the number of closed sales dropped by 25.38 percent from October and 4.98 percent from last year.

*Written December 8, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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Denver-area Remains a Steadfast Seller’s Market in October.

The housing market continued to thrive in October, with a record-high for average sales price for both single-family detached and attached properties at $625,100 and $393,733 respectively, as well as a record-low of months of inventory at an astonishing 0.81. The effects of the COVID-19 months have again created historically low inventory with only 4,821 active listings, representing the lowest amount of active inventory for any October on record by nearly 2,000 listings.

Low Inventory Isn’t Halting Transactions.

The lack of inventory hasn’t slowed the actual process of buying and selling, with 5,984 closed transactions in October. With low interest rates and holidays around the corner, buyers are pushing budgets to find ideal homes. Detached closed properties were up 19.52 percent from September and up 32.15 percent year-over-year. With 1.88 months of inventory and median days in MLS dropping 8.33 percent to just 55 days, detached luxury homes firmly sit in a seller’s market.

Good News for Detached Luxury Homes Inventory.

Detached homes remain the preference for luxury buyers. While the Luxury Market firmly continues as a seller’s market, there is optimistic news for buyers as there are more detached home choices than last year with new listings up 14.62 percent. On the flip side, the attached Luxury Market is moving slower as buyers’ preferences lean towards detached homes. While there were 83.87 percent more listings this year than last year and 11.76 percent more listings than last month, the attached market is moving slower than the detached segment.

Don’t Count Out the Attached Luxury Market.

While the months of inventory is a stark contrast to the detached segment at 5.7 months, the year-over-year data proves new listings have steadily climbed from 233 in 2016 to 472 in 2020 and pending sales have climbed from 103 in 2016 to 247 in 2020.

*Written November 10, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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September was the Toughest Time in History to Buy a Home in Metro Denver. Why?

Record-breaking low housing inventory was a key factor to September being one of the most challenging times in history to buy a home in the Denver market.

The 5,301 active listings at September’s month end represented the lowest amount of active housing inventory available on record for any month of September by 2,215 homes. The median days on market in the entire residential market was six, which was three days lower than the previous record set in September 2015 and 2016. For both single-family and condo homes, there were more closed and pending transactions than ever before reaching 5,850 and 6,376 respectively.

Housing inventory can’t keep up with the high level of homebuyer demand. This is further evidenced in that the months of inventory hit an all-time low at 0.91 months, signifying a very strong seller’s market.

Record-breaking Home Prices.

Furthermore, the median home price for both single-family and condo homes hit a record-breaking high at $510,000 and $334,752 respectively. The total sales volume of $3.15 billion represents the highest amount for any September on record and the third-highest month of all time.

Luxury Market is Red Hot Too.

Luxury Market home sellers were having to think fast and figure out their next move because the average days on market for a luxury home was down 39.5% year over year at 46 days.

Year over year, 81% more luxury homes sold in September and 87% more single-family homes closed. The luxury condo market is also showing signs of strength with 32% more sold compared to 2019.

Additionally, compared to last year, new listings priced $1 million+ were up 26% while pending listings were up a whopping 116% in September. Single-family luxury homes were also hot in September with a 125% increase in pending sales compared to this time last year. The luxury condo market was just as hot with a 58% increase in pending sales going under contract from one year ago.  

*Written October 9, 2020. Updates may be available after this date.