Denver held on to summer for a long time, but with these past few days of chilly air and drizzling skies, it’s finally been time to bring out those jackets, scarves and boots. With the changing seasons come changes in the real estate market, too. Read more from our president, Justin Knoll, recaping Q3 as we move into Q4!
“As we wrap up a fast-paced 3rd quarter, and the best September for the residential market over the past five years, market conditions are starting to shift in favor of homebuyers as we enter the 4th quarter. Typically in Denver, the Daylight Savings time change (Nov. 1st this year) shifts buyers’ efforts to find homes from weekdays and evenings to more time on weekends and day time hours. This will decrease demand in many areas and will increase the inventory of homes on the market, which are the leading reasons why October is generally considered the best time of year to purchase a home.
Entering October, we have already seen an increase in price reductions and some sellers are now facing the reality that they may have missed the peak selling season. Overall, showing activity, a valuable metric to track the market, is starting to slow as well, making this an opportunistic time for homebuyers to find a new home.
At the end of Q3, the average (attached + detached) sold price was $356,005, down 2% from the previous month, but up 12% year over year, while listings under contract decreased by 10% in September to 4,844. This is a 4.8% increase year over year. A quick year to date summary shows new listings at 54,816, DOM at 29, average price at $362,200 and a record-smashing $15.4 billion in total sales volume, a 15% increase over 2014.
Nationally, the economy continues to grow quarter over quarter with Housing making a major contribution as Residential Investment has grown at an annual rate of nearly 10%, faster than the GDP. With much speculation, any interest rate increase by the Federal Reserve, now expected in December by many, is not likely to derail the strong housing performance.
According to the S&P/Case-Schiller U.S. Home Price Index, San Francisco and Denver have reported the highest year over year home price gains in the nation. These are the only two markets to realize double digit gains, while Denver posted a whopping 10.3% increase compared to the 5% national average many experienced.”
– Justin Knoll, President, Madison & Company Properties
You can view the full Madison Q3 Report here.