Madison Year-End Report 2015

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.

justin knollThe 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

A Year in the Life of Denver

Denver had quite the year. It wasn’t just the crazy snow in June and balmy weather in December topped off with a more Denver-like snowstorm a week before Christmas, the housing market was off the chartsblue bear and we’ve had quite the increase in population.

Denver is one of the top ten places to move, especially for business and careers, inching ever closer to cities like Atlanta and San Francisco. Over 100,000 people have moved to Denver in the last year, a growth in population beaten only by North Dakota…the whole state. With all the new developments, projects and general growth to the city, the construction industry is booming, with over 8,000 new jobs, rivaling New York City by just a hundred-thousand less.

Across the country, Denver has had the fastest growing home values for the past ten months straight. According to Zillow, the online real estate company, home values in Denver have appreciated 15.5%, and are now at a median estimated value of $318,000.

Within that, certain neighborhoods are growing greater in popularity. According to Redfin, North Denver was the most competitive real estate neighborhood in 2015, with over a hundred homes currently for sale, in Metro Denver. We’ve seen many neighborhoods grow in popularity and increased developments, like City Park and the downtown residential area.

There’s so much growth and excitement in Denver. Our restaurant scene is booming, with innovative and marvelously creative new spaces to eat and drink. We’re becoming known for our love of, and production of, quality craft beers, and 2016 promises so much more, plus the completion of the new Light Rail lines!

Best of Denver: Food, Drinks and Coffee

 When it comes to getting our caffeine on, Denver usually gets their coffee right. Here are five of many incredible coffee shops in the city…


Purple Door Coffee
2962 Welton Street, Denver, Five Points

Amethyst Coffee Co.1111 Broadway Street, Suite 101, The Golden Triangle

Black Eye Coffee820 Sherman Street, Capitol Hillcoffee-690453_960_720

Whittier Café1710 East 25th Avenue, Whittier 

Steam Espresso Bar 1801 South Pearl Street, Wash Park

Fika Coffee House19559 East Mainstreet, Parker

Cookies and Crema4284 Trail Boss Drive, Castle Rock

 

Denver has grown into a foodie culture, a city full of innovative and delectable restaurants, cafes and fancy food-courts. Here are five of Denver’s best restaurants of 2015…

Mercantile Dining & ProvisionUnion Station, 1701 Wynkoop Street, Downtown

Leña24 Broadway, Baker

 Sarto’s2900 West 25th Avenue, Jefferson Park

Biju’s Little Curry Shop1441 26th Street, RiNo

 To The Wind Bistro3333 East Colfax Avenue, Uptown

Big Bill’s New York Pizza8243 S Holly Street, Centennial

Café Terracotta5649 S Curtice Street, Littleton

Indochine19751 Mainstreet, Parker

 atmosphere_3c-585x460 Biju-about-gallery-4-compressed Biju-about-gallery-3-compressed employees_3b-585x460

 

Paying the dues and earning stripes, Denver has emerged as a beer city…and we know it. Check out five of Denver’s best or new breweries of 2015…

Renegade Brewing Company925 West 9th Avenue, Santa Fe Arts District

12191871_10153227812979607_5353106074488405831_nCrooked Stave3350 Brighton Boulevard, RiNo

Dry Dock Brewing Company15120 East Hampden Avenue, Aurora

Prost Brewery2540 19th Street, LoHi 

Great Divide Brewing Company221 Arapahoe Street, Ballpark & 1812 35th Street, RiNo

Madison Report || 2015, Q3

Q3Denver 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.

justin knollAt 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.

August Market Update from President, Justin Knoll

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 justin knollslowdown 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.