DMAR Real Estate Market Trends Report | APR. '17
Denver-area housing market poised for record-breaking year as it experienced significant increases in new listings, sales volume and home prices in March.
Compared to February, March saw significant increases in active and new listings, as well as homes sold and under contract. Sales volume increased 44.42 percent compared to the month prior and 9.73 percent year over year, to reach over $1.85 billion last month.
“The spring selling season in our housing market experienced some of its own March Madness,” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “Homebuyers and sellers will be happy by the healthy increase in activity.”
March is historically the start of metro Denver’s housing cycle that then peeks in June.
“The current housing activity may be the catalyst to a record-setting year,” added Danyliw. “First, the average sold price and median sold price year to date are setting up to break new records.”
In the single-family home market, month over month, the average sold price increased 4.90 percent to $468,889 while the median sold price rose 2.78 percent to $406,000. In the condo market, the average sold price was up 7.26 percent to $317,402, and the median sold price was up 2.97 percent to $260,000. Additionally, as in February, March experienced a surge of new listings for the residential market (single-family and condos) with an increase of 49.05 percent month over month and 19.35 percent year over year to reach 6,810 new listings.
“The increase in new listings will give homebuyers some extra breathing room in finding that dream home,” he comments.
In the residential market, active listings totaled 4,921 in March, up 26.90 percent from the month prior and 9.79 percent year over year. The number of sold listings increased by 36.01 percent compared to the previous month.
Increases in housing activity are normal for this time of year, but many of the increases were greater than historical averages. The historical average increase in active listings from February to March is 4.58 percent; 2017 represents a new record increase of 26.90 percent.
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 March 123 homes sold and closed for $1 million or greater – up 95.24 percent from the previous month, and up 50 percent year over year. The closed dollar volume in March in this luxury segment for both single-family homes and condos was $178,109,289, up 88.78 percent month over month and up 45.23 percent year over year.
Notably, the year-to-date sold volume of luxury homes rose to above $400 million compared to over $186 million in 2014.
The highest priced single-family home sold in March was $6,000,000 representing four bedrooms, seven bathrooms and 5,317 above ground square feet in Cherry Hills Village. The highest priced condo sold was $1,779,000 representing three bedrooms, four bathrooms and 2,796 above ground square feet in Denver. Listing and selling agents for both transactions are DMAR members.
Sales of both single-family homes and condos priced over $1 million escalated 95.24 percent from February. Luxury condo sales skyrocketed 200 percent from February to March. Days on market fell for both condos and single-family homes to 115, and price per square foot went up 8.63 percent month over month.
“Luxury homebuyers came out of winter hibernation in March and were in a buying mood,” said Jill Schafer, DMAR Market Trends Committee member and Metro Denver real estate agent. Schafer adds, “Despite these major increases in sales, the luxury single-family segment continues to hold its position as the only segment where buyers still have the power.”
In the Premier Market, months of inventory in single-family residences are near the floor at only 1.7 months.
“The competition continues to be fierce as homes are only on the market for an average of 67 days, down from 83 days last year at the same time,” said Elaine Stucy, DMAR Market Trends Committee member and Metro Denver real estate agent. “Average prices are up slightly from last month, with just shy of 30 percent more buyers in this price range than a year ago. That is the greatest increase in buyers compared to all other the price ranges. So, sellers in this segment looking to move up in price are poised for a slam dunk.”
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