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