DMAR Real Estate Market Trends Report | DEC. '14
HOMES: A HOT PURCHASE FOR THE HOLIDAYS BEFORE MORTGAGE RATES INCREASE IN 2015
Year-to-date, the severe shortage of inventory showed active listings down 42.04% and the number of sold listings remained unchanged, compared to last year. However, the market is still 5.24% ahead of the total sales volume from a year ago with an overall sales volume at $16.1 billion year-to-date. The year-over-year residential market has seen days-on-market drop 22% and the average sales price increase 8.95%.
“With less than a month remaining in 2014, the traditional or seasonal cool-down has slowed the market somewhat – although not as much as in prior years,” said Anthony Rael, Chair of the DMAR Market Trends Committee.
According to Rael, homebuyers are somewhat anxious to get settled into a home because mortgage interest rates are expected to increase in 2015. Currently, mortgage interest rates remain stable with 30-year conventional rates under 4% and 15-year conventional rates at 3.0%. He comments:
“Buyers are growing weary watching from the sidelines. Meanwhile, prospective sellers looking at the horizon still see an excellent opportunity to ‘cash-in’ to buy up into their dream homes or, in some cases, downsize as they become empty nesters. They realize the inventory of homes for sale remains low and prices continue trickling upward.” ~ Anthony Rael, Chair of the DMAR Market Trends Committee.
By the numbers, the inventory of available homes for sale was 5,420 at November month end, 2,929 properties came onto the market, 3,553 properties were placed under contract, and 3,586 properties closed at a median sold price of $280,954 and an average sold price of $330,544 resulting in closed dollar volume of $1.2 billion last month.
The 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). Significantly more luxury single-family homes have sold so far this year compared to two years ago – up 42%.
“While we sold more homes in the luxury market sector, the big news is that we have sold them much quicker, 42% faster than two years ago at this time and 31% faster than last year,” Jill Schafer, member of the DMAR Market Trends Committee.
This means homes sold 78 days faster than two years ago and 49 days quicker than last year respectively.The highest priced closing in November was a $3,825,000 single family property representing 7 bedrooms, 11 bathrooms and 8,308 square feet in Old Greenwood Village in Arapahoe County.
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The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver Metro area. Reports include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the report was sourced from REcolorado® (December 2, 2014) and interpreted by DMAR.