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

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.