DMAR Real Estate Market Trends Report | JUL. '16

July 6, 2016

“Just like the sound of a powerful M-80 firecracker bursting over the skies Fourth of July weekend, Denver's real estate market exploded with a flurry of new listings and ended the month with a dazzling display of active inventory,” said Anthony Rael, Chairman of the DMAR Market Trends Committee.

Rael assesses that the increase in Denver-area housing inventory may be attributed to mortgage rates plunging to the lowest level in three years as the Federal Reserve reacts to Brexit. Since 2005, Denver has seen an average increase in listings of 4.2% from May to June. This year, however, listings on the market increased 24.40%.

He adds, “On the heels of Brexit, which caused mortgage interest rates to plummet even lower the past two weeks, we welcomed a pint-sized boom in single-family listings as fellow real estate agents pounded the streets seeking properties for hungry homebuyers who are nipping to get under contract, locked, and closed as soon as possible.”

"Mortgage rates plunging to the lowest level in three years as the Federal Reserve reacts to Brexit. " - Anthony Rael.

By the numbers month over month, for the entire residential market, 7,615 new listings came on the market (up 12.17%), 5,587 homes were placed under contract (down 4.61%), and 5,324 homes sold and closed (up 2.94 %). June closed out with 6,796 active listings, representing a 24.40% increase. 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. Days on market closed the month at 26, compared to 31 the month prior.

For the single-family home market, new listings jumped to 5,708 (up 13.28%) over the previous month. Average and median sold prices bumped up month over month with increases of 2.92% to $466,288 and 0.25% to $396,000 respectively. Year over year, single-family home prices were up an average of 10.74%. The condo market showed the supply of new listings increased by 8.97% to 1,907 units over the previous month. The average sold price actually decreased 2.27% to $291,554, while median sold prices remained mostly unchanged with a gain of only 0.41% to $246,000. Year over year, condo prices were up 12.38%t for average sold prices, and 13.89% for median sold prices. Across the board, total sales volume was $10.17 billion year to date (up 7.21% compared to 2015).

DMAR’s monthly report also includes statistics and analysis 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 June, 154 homes sold and closed for $1 million or greater – up 18.46% from the previous month and up 13.24%year over year. The closed dollar volume in June in the luxury segment was $ 230,138,832 up 17.11% from the previous month, and up 20.88%year over year.

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The highest priced single family home sold in June was $5,275,000 representing six bedrooms, nine bathrooms and 7,736 above ground square feet in Cherry Hills Village. The highest priced condo sold was $3,010,000 representing three bedrooms, three bathrooms and 2,445 above ground square feet in Denver. Both the listing and selling agents for the two transactions are DMAR members.

“The number of Luxury Market homes sold in June climbed with our summer temperatures,” stated Brigette Modglin, DMAR Market Trends Committee Member.

From May to June, there was more than a 20% increase in the number of single-family homes sold over $1,000,000. Year to date, there was a 19.22% increase compared to last year and a 52.49% increase compared to 2014. Price per square foot continues to increase as well, with the average total price per square foot (all floors including basements) at $264 year to date for single-family homes, which is 6% higher than in June of 2014. The average price per square foot for condos was $545, which is 11% more than two years ago.“Some of the metro area’s luxury hot spots are seeing an increase in homes priced at more than $1,000 a square foot for above ground square footage. In the past few years, there was one or two properties a year selling above $1,000 per square foot, but so far this year four units at 250 Columbine in Cherry Creek North have closed at over $1,000 per square foot,” added Modglin.