DMAR Real Estate Market Trends Report | JAN. '16

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"We're number one. We're number one…and I'm not referring to the Broncos number one seed in the upcoming football playoffs,” said Anthony Rael, Chairman of the Denver Metro Association of REALTORS Market Trends Committee. “The Denver metro area continues to be the number one real estate market in the country.” 

Last year, there was a recorded 65,872 new listings, up six percent year-over-year (YOY), Days on Market were at 31 (down 18 percent YOY), average home price was $363,143 (up 12 percent YOY), and median home price was $314,000 (up 14 percent YOY).

“Home sellers have experienced record rates of return on their property as values have skyrocketed the past few years – including a 14 percent increase in the past 12 months alone,” adds Rael. “Homebuyers struggled throughout the year with tough competition to get into scoring position due to our record-low inventory, and, in many cases, had to rely on their late season Peyton Manning…I mean backup in order to emerge victorious.” 

Month-over-month, digging into the December MLS housing stats, 2,275 new listings came on the market, down 33 percent; 2,766 homes were placed under contract, down 31 percent; and 4,170 homes sold and closed, up 15 percent from the previous month. December closed out with 4,384 active listings, representing a 23 percent decrease in inventory over November, but 0.67 percent more – or 29 total - properties than December 2014. The total sales volume jumped 18.5 percent to $1.56 billion from the previous month.

Notably, since 1985, Denver-area has averaged 13,869 active listings in December. The high-water mark was 24,603 listings in 2007 and the record low-point was 4,355 in 2014.

The single-family market, month-over-month, had a sharp drop of 31 percent in new listings or four percent fewer new listings than December 2014. The average and median sold prices ticked upward from the previous month with increases of four percent to $414,472 and one percent to $347,000 respectively.

The condo market showed the supply of new listings dropped 36 percent over the previous month to 646, while the average sold prices remained relatively unchanged with a 0.47 percent increase to $278,656 and 0.45 percent decrease to $223,000.

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 December 119 homes sold and closed for $1 million or greater – up 92 percent from the previous month and up 40 percent year over year. The closed dollar volume last month in the luxury segment was approximately $179.35 million, up 85 percent from the previous month and up 41 percent year over year.

The total sales volume of luxury homes priced $1 million plus in 2015 was approximately $1.6 billion, up 25 percent from 2014 and up 36 percent from 2013.

"High end condo sellers enjoyed a beautifully wrapped gift this year,” stated Jill Schafer, member of the Denver Metro Association of REALTORS Market Trends Committee. “The number of Luxury Market condos priced $1 million plus that sold increased 40 percent from the month before and 600 percent compared to December 2014.” 

According to Schafer, the much-anticipated Cherry Creek North condo development, 250 Columbine, continued to impact the statistics. This ultra luxury address averaged a sold price of $1,410,548 in December, which was nearly $763 per square foot, an unprecedented number even for the high-end area. No units are left for sale but 17 are under contract, so the statistical impact from this development will continue into 2016.   

Schafer adds, “Luxury single-family home sellers also received a pretty nice gift in December. There was a 108 percent increase in homes sold from November to December that were priced $1,000,000 and higher. That’s up more than 22 percent year-to-date compared to 2014 and up 35 percent from 2013. Luxury single-family home sellers received a bonus gift - they didn’t have to keep their homes on the market as long as they would have if they sold in 2014 or 2013. The days on market in December was 4.5 percent less than 2014 and 34 percent less than 2013.” 

Overall, there was an average of six months of luxury single-family home inventory at the end of the year in the 11-county area.

Schafer states, “Head to the suburbs and the months-of-inventory increases as much as the commute. Buyers looking in Castle Rock, Evergreen, Littleton, Parker, Longmont and Niwot had a lot more to choose from with months of inventory ranging from more than 13 to 30. Cities like Boulder and Denver pulled up the 11-county statistics. It’s a sellers market in those urban areas with only 3.5-4 months of inventory. Anything under 5-6 months places the seller in control. So, Luxury Market buyers looking for a deal should head out to the suburbs, but luxury builders should be looking for lots in the urban areas if they want a quick sale.” 

The highest priced single family home sold in December was $5,960,000 representing six bedrooms, seven bathrooms and 8,122 above ground square feet in Cherry Hills Village. The highest priced condo sold in December was $2,869,462 representing three bedrooms, four bathrooms and 2,922 above ground square feet in Cherry Creek North. The listing agents and selling agents for both transactions are DMAR members.

►► Join the conversation and let us know what trends and activity YOU are seeing in the marketplace!

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 report was sourced from REcolorado® and interpreted by DMAR.

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