DMAR Real Estate Market Trends Report | NOV. '14
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Denver Metro Association of REALTORS® (DMAR) released its November Denver Metro Real Estate Market Trends Report which concludes that the “summer sellers” market has eased. The mid-year buying frenzy appears to be over as “Days on the Market” is increasing, while four other indicators – “Closed Price” to “List Price” ratio, “New Listings,” “Median Sales Price” and “Closed Sales Volume” – are all decreasing.
“Much like the KC Royals World Series run came to an end last week, so too did the frenzied summer sellers market,” said Anthony Rael, Chairman of the DMAR Market Trends Committee. “Just a few short months ago we witnessed multiple offer situations. ‘Days on market’ seemed like hours on the market, and sales prices were driven upward.” ~Anthony Rael, Market Trends Committee Chairman
The low inventory of homes available for sale continues to decline with seasonality impacting overall transactions. The month-end inventory of 6,748 homes is getting closer to the record low of 6,341 homes in March 2014. Also, “homes under contract” is an indication of future sales and that fell sharply year-over-year by 21.96% in the single-family sector.
In the $100,000 to $199,000 price range, the Market Trends Committee found very low inventory with only 260 units. Of that, only 75% are individually owned; of that 75%, only 48% are located within the C-470 beltway. Compared to the $200,000 to $299,000 price range, 83% are individually owned and 61% are within the C-470 beltway. As such, there are fewer quality listings in the lower price range and there are less of them closer to the city center.
Market Insights:
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Hottest price range for Single Family Homes: $200,000 to $299,999
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Hottest price range for Condos: $100,000 to $199,999
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The Condo market remains hot
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Top three counties for transactions: Denver, Arapahoe and Jefferson
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High rent prices and desirability of Denver area driving Millennials into the market
“Overall, the news is not all bad as we point out strengths in our market with a year-to-date average sold price of $324,362 and a closed dollar volume of $14.8 billion,” adds Rael. “Seasonality will likely impact transactions as we enter the holidays, but demand remains strong for Millennials looking to use the off-season to trade their high rent prices to purchase in the Denver area, as well as buyers who will continue to look for the home of their dreams.”
The report also includes statistics and analyses in its supplemental “Luxury Market Report” (homes sold for $1 million or greater), “Signature Market Report” (homes sold between $750,000 and $999,999) and “Premier Market Report” (homes sold between $500,000 and $749,999). Notably, compared to 2013, year-to-date the number of sold condos is up 63.64% in the $750,000 to $999,999 price range, and up 113.15% in the $500,000 to $749,999 price range. The highest priced closing for the month of October was a $2,700,000 single-family home representing 4 bedrooms, 8 bathrooms and 7,166 square feet in Denver.
The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver metropolitan area. Reports include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the DMAR Luxury and Signature Market Reports were sourced from REcolorado® (November 1, 2014) and interpreted by DMAR.
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