DMAR Real Estate Market Trends Report | AUG. '16
Buyers feel relief with price improvements and an abundance of listings. In July, for the entire residential market (single family and condos), there were decreases in nearly every category, including new listings, homes sold, average and median sold prices and overall sales volume. The only category showing an increase was active listings, up 9.89 percent compared to the month prior.
“Who needs a national political convention for entertainment when we get to experience the Denver Metro real estate market?” said Anthony Rael, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “July was an interesting month overall as so many seasonal factors converged, pushing nearly every statistical category into the red zone.” He adds, “The one and only category that showed an increase at month’s end was active listings. As mortgage rates continue to be ridiculously low, it’s a good time to get buyers in the car and go shopping because there is an abundance of listings to quench the thirst of those who were beginning to grow weary over the past few months.”
It is important to note, however, that although overall inventory is up month-over-month, this was the lowest July on record for active listings, down slightly (0.03 percent) from the previous record set in July of last year. The record high average active listings for the month of July, and also the all-time record high, was set in 2006 with a whopping 31,989 listings.
By the numbers month over month, for the entire residential market, 6,814 new listings came on the market (down 10.52 percent), 5,436 homes were placed under contract (down 2.70 percent), and 5,016 homes sold and closed (down 10.79 percent). July closed out with 7,468 active listings, representing a 9.89 percent increase in inventory over the previous month. Average and median sold home prices both slowed down from the previous month, with appreciation slipping 1.88 percent to $412,312 and 3.01 percent to $354,000 respectively. Days on market closed the month at 25.
For the single-family home market, new listings dropped to 4,988 (down 12.61 percent) over the previous month. Average and median sold prices slipped month over month with decreases of 0.87 percent to $460,623 and 1.34 percent to $389,900 respectively. Year over year, single-family home prices are still up an average of 12 percent. The condo market showed the supply of new listings fall by 4.25 percent over the previous month to 1,826 units. The average and median sold prices decreased 2.32 percent to $285,531 and 2.80 percent to $243,000 respectively. Average sold prices for condos are still doing very well with appreciation of 12.02 percent year-over-year. Across the board, total sales volume was $12.4 billion year to date (up 5.70 percent compared to 2015).
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 July, 127 single-family homes sold and closed for $1 million or greater – down 15.89 percent from the previous month and up 17.59 percent year over year. The closed dollar volume in July for single-family homes in the luxury segment was $193,359,405 down 13.74 percent from the previous month, and up 14.17 percent year over year.
“Price reduction was a common term seen in the Luxury Market, as sellers made adjustments in response to an overall slowdown,” said Jill Schafer, DMAR Market Trends Committee Member and Metro Denver real estate agent. “While the Luxury Market is the only segment where homebuyers have an advantage, sellers aren’t complaining as they are getting more per square foot than in years past.”
The highest priced single-family home sold in July was $5,600,000 representing seven bedrooms, 11 bathrooms and 12,044 above ground square feet in Denver Country Club. The highest priced condo sold was $1,450,000 representing two bedrooms, three bathrooms and 2,202 above ground square feet in Denver. Both the listing and selling agents for the two transactions are DMAR members.
From June to July, there was a 15.89 percent decrease in the number of single-family homes sold over $1,000,000. Year to date, there was a 20.32 percent increase compared to last year and a 49.35 percent 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 $263 year to date for single-family homes, which is 4.37 percent higher than in July of 2014. The average price per square foot for condos was $551, which is 13.61 percent more than two years ago.
“Looking at the Premier Residential Market, we see it is holding steady with an increase in days on market of 1.56 percent compared to last year, and a zero percent increase year to date compared to July 2014,” said Brigette Modglin, DMAR Market Trends Committee Member and Metro Denver real estate agent. “The Signature Market, however, is clearly having no problem selling as the days on market decreased 13.64 percent year over year and 20 percent year to date since 2014.”
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