You can read the whole report here.
From Denver Metro Association of Realtors®:
For the entire residential market last month, active listings, new listings, homes under contract, and homes sold showed double-digit month-over-month (MOM) gains. The total sales volume is up 11.93 percent year to date to $3.87 billion.
“Spring has sprung and the Denver-area is bursting with activity,” said Anthony Rael, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “I’m quite certain homebuyers and my fellow REALTORS® are growing tired of hearing about our lack of housing inventory, so it’s with great pleasure that I share that this month’s market trends report is filled with an abundance of positive news.”
Madison & Company president, Justin Knoll, recaps 2015 for our End of Year Report…
2015 will go down as one of the best ever for Denver Metro area sellers who reaped the rewards of being in the nation’s hottest market, realizing an average of 14% increase in value from just one year ago. On the flip side, buyers felt the pressure of shrinking inventory and rising prices, while the silver lining of historically low interest rates gave buyers a fighting chance to find their new home.
With over 55,500 homes selling for over $20.16 billion in closed sales volume, 2015 was a record year which can be attributed to Denver’s economic and population growth over the past few years. In that time, 65,872 new listings came on the market, up 6% year over year, while Days on Market were at 31, down 18%.
To finish the year, the average home price was $363,143, up 12%, and the median home price was $314,000, up 14% from this time last year. This includes detached and attached single family homes. Towards the end of the year, we experienced a bit more balance in some segments of the market as inventory snuck up in some areas and prices began to flatten out after the summer months. However, these were modest changes that could be attributed to seasonal slowing and typical trends.
The local job market recovery continues as we have added over 200,000 jobs since 2008, which leads us to a healthy economic outlook into 2016. Looking forward, high demand will likely continue as more than 100,000 people moved to Colorado over the past 12 months, making it the second fastest population gain in the Nation. Adding to a feverish market are the 83% of renters that say they want to own a home according to a recent National Association of REALTORS® survey.
Overall, we anticipate the next 12 months to bring more buyer demand, similar inventory shortages, growing affordability concerns and possible interest rate hikes, all of which will make 2016 a year to remember.
– Justin Knoll, President
Madison & Company Properties
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.
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.
Q2 in Denver finished out spring and ushered in summertime. With unexpected storms full of hail and chilly winds, we were thrilled when summer finally stayed, bringing the clear blue skies and beautiful mountain weekends we so love. Even more exciting than crazy weather and a spectacular 4th of July, is the Denver housing market we’re continuing to see increase in growth.
Justin Knoll, president of Madison & Company Properties, shares more:
“As we find ourselves in the middle of another summer season, it is clear that Denver is the place to be for people around the globe. For us natives, we know just how amazing the warm days and cool nights can be. We know what it’s like to have a pick of any imaginable outdoor activity right in your backyard. We know about the music, arts and entertainment all around us, topped off by the premier beer and food scene in the nation. We know these things and we are lucky enough to live here to enjoy it.
What we are discovering for the first time is the unprecedented demand for housing in the Mile High City. Sure, we have seen our Real Estate market boom and bust at times but never like this. Denver is now an international city. A place where the limits are endless and the energy is palpable. More people under the age of 34 moved to Denver than anywhere in the US last year and that trend is sure to continue.
During the 2nd quarter of 2015, Denver was ranked as the hottest market in the nation by realtor.com. Supply and demand issues mirrored that of Q1 but things picked up even more. The housing supply in Metro Denver was 5 times less than the National average while the number of homes sold increased by nearly 5% during the quarter. Buyers are scooping up any home they can get their hands on and are paying a premium to do so as average sales prices topped the $400,000 mark for the first time ever in April and buyers purchased a record $2.15 billion worth of homes in June alone.
While we expect to remain one of the nation’s strongest markets in 2015, we do anticipate to see a bit of a slowdown, typical with seasonality. Over the past two months we saw an increase of homes coming on the market. That, coupled with even a slight decrease in demand should give some relief to frustrated buyers who are looking to negotiate on the right home. Interest rates have begun to increase which may send some buyers to the sidelines, thus taking some of the advantage away from sellers who became accustomed to receiving 5 or more offers on their home with hours of listing it. For many of us, we welcome the return of a more stable and balanced Denver housing market.”
To view the full Q2 Market Report Click Here