“Historic data indicates Denver-area will see annual appreciation in housing prices during general election years. The market remains robust amidst record low inventory for the month of October and drop in homes sales.
Year-over-year average price of homes sold is up 9.96 percent to $398,588. However, the number of homes sold in October dropped 11.43 percent compared to last year, and the pace of new listings coming onto the market is slow with 9.87 percent fewer homes year over year. Notably, 2016 represents a new record low in listings for October with 6,731, compared to the previous low record in 2014 with 6,748 listings. From 1985 to 2015, average active listings for October is 16,615. For comparison, the record high October was 2006 with 29,722 listings.
With the election season coming to an end, an important question we face is how it will affect the metro Denver housing market.”
©Denver Metro Association of Realtors
It was a crazy summer, but the season is winding down as winter sets in. Madison president, Justin Knoll, recaps the quarter below. You can read the full report here.
“The beginning of fall typically ushers in two things – the Rockies being officially eliminated from post-season play, and the number of homes sold in the Denver real estate market tapering off after a blistering hot summer. Having said that, the Denver Metro Association of REALTORS® (DMAR),’The Voice of Real Estate® in Denver Metro,’ believes this fall could still shape up to be the hottest home market in the last decade. Why? Even though September produced a seasonal slowdown, indicators point to above-normal numbers of active listings. Also, many homebuyers are anxious to get locked into a low-interest home mortgage loan before the Feds likely propose an interest rate increase at the end of the year.” – Anthony Rael, Chairman of the DMAR Market Trends Committee
While home prices experienced a slight dip in Metro Denver, overall trends show boom in appreciation values since 2014. The average and median sold prices of homes both slowed down from the previous month, with appreciation slipping 1.41 percent to $404,160 and 0.46 percent to $350,000, respectively. While home prices had a slight decline month over month, Denver-area has experienced a 23 percent boom in average home appreciation values year to date in the past 24 months.
“Who needs a national political convention for entertaining when we get to experience the Denver Metro real estate market? said Anthony Rael, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “July was an interesting month overall as so many seasonal factors converged, pushing nearly every statistical category into the red zone.” He adds, “The one and only category that showed an increase at month’s end was active listings. As mortgage rates continue to be ridiculously low, it’s a good time to get buyers in the car and go shopping because there is an abundance of listings to quench the thirst of those who were beginning to grow weary over the past few months.”
The Madison Q2 report is here! Madison president, Justin Knoll, shares an update on the market. You can view the full report here.
Welcome to the second half of 2016, a year sure to be remembered for its fast pace, dramatically increasing pricing and multiple offers on nearly all transactions. Statistically, 2016 has been remarkable as homes on the market hit a new record low for the month of May at 5,463 active listings. The average number of active listings in the month of May is 16,981, while the record high was 30,457 in 2006 and the record low was 5,657 in 2015.
Just one month later, things shifted dramatically as there were 7,615 new listings to hit the market, a 12.17% increase compared to the month prior, creating a 9.67% increase year over year. 5,587 homes were placed under contract (-4.61%), 5,324 homes sold and closed (+2.94 %) and 6,796 active listings remained on the market for buyers to consider. While this is typically a time when inventory grows until its peak in August and September, this was a rather large jump for the market in one month.
Average and median sold home prices edged up again from the previous month with appreciation gains of 2.77% to $421,266 and 1.39% to $365,000 respectively. Buyers are feeling some pressure to act fast as the average days on market closed the month at 26, compared to 31 in May.
With continued inventory issues, increased demand and historically low interest rates (thank you Brexit) the rest of the year appears to be a continuation of the hot year we have had so far. While it may be daunting to some, others are finding opportunity in most market segments and buyers and sellers are having success accomplishing their goals.
It is a true professionals market as many deals are closing mainly because of the hard work of Realtors and lenders as transactions are more complex than ever. Our advice, have clear goals, partner with the best professionals and be ready to pounce…Denver is still the place to be.
– Justin Knoll President, Madison & Company
“Denver’s red-hot real estate market exploded with a flurry of new listings and active inventory. In June, for the entire residential market (single family and condos), there was a 24.40% increase in active listings and 12.17%increase in new listings compared to the month prior. Year over year, active listings increased 9.67% and new listings increased 6.79%.”
– Anthony Rael, Chairman of the DMAR Market Trends Committee
Your monthly real estate stats, courtesy of Denver Metro Association of Realtors®. To view the full report, you can visit DMAR’s website here.
Here are your monthly stats from the Denver Metro Association of Realtors.
By the numbers, for the entire residential market (single-family and condos), April closed out with 5,221 active listings – representing a 16.5 percent increase in inventory over the previous month and four percent over the previous year. Month over month, new listings are up 12 percent to 6,387, homes under contract are up nine percent to 5,153, and homes sold and closed are up one percent to 4,312. Average and median sold prices of homes edged up again from the previous month with smaller gains of two percent to $398,663 and 1.45 percent to $350,000 respectively. Total sales volume in the residential market year to date was approximately $5.7 billion, up 9.5 percent compared to 2015.
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