As the dog days of summer begin to grow shorter and temperatures start to cool down, so too does one of the hottest Real Estate markets in the nation. Have no fear as this is a very consistent, annual happening in Denver. No matter what is going on in the news, the stock market or in the world of mass data, the buying habits and lifestyles of people still dictate the ebbs and flows of any given market.
August was no different, and the slight slowdown began even a bit earlier than in years past as 6,416 new listings came on the market, while 5,383 homes were placed under contract and 5,088 homes sold and closed. Month over month, there was a significant decrease in new single family listings of 15.5% while the average and median sold prices remained relatively unchanged from the previous month, at -0.23% to $410,525 and -0.21% to $349,250 respectively.
For the entire residential market, homes under contract decreased by 1.8%. Sold listings decreased 15% and total sales volume dropped 15% to $1.86 billion from the previous month. Finally, a quick summary of the year-to-date residential market shows new listings at 48,970, days on market (DOM) at 29, average price at $363,228 and a record-smashing $13.5 billion in total sales volume
Going forward, the squeeze of skyrocketing rental rates will keep homebuyer demand at a very high rate – particularly with homes priced $350,000 and below, as owning a home continues to be more affordable than renting in many areas.
Our monthly report also includes statistics and analyses in its supplemental Luxury Market Report (properties sold for $1 million or greater), Signature Market Report (properties sold between $750,000 and $999,999, and Premier Market Report (properties sold between $500,000 and $749,999). In August, 105 homes closed for $1 million or greater – down 9.5 percent from the previous month. The closed dollar volume last month in the luxury market segment was approximately $153 million, down 16 percent from the previous month.
The number of luxury sales – condo and single family homes priced $1 million or greater – was down 9.5 percent from the previous month, but properties sold faster at 92 days in August versus 112 days in July. Year to date, the number of single family homes sold in this segment were up 23 percent compared to year-to-date last year, and up more than 30 percent from year-to-date 2013. Luxury homes this year sold for $5 more per square foot than last year, and $13 more per square foot from two years ago.
The highest priced single family home sold in August was $4,150,000 representing 6 bedrooms, 11 bathrooms and 7,451 above ground square feet in Cherry Hills Village. The highest priced condo sold in August was $2,420,000 representing 2 bedrooms, 3 bathrooms and 3,013 above ground square feet in Denver.