DMAR Real Estate Market Trends Report | JAN. '17
2016 marks record-high home prices, record-high sales volume and record-low housing inventory in metro Denver.
As 2016 has drawn to a close, the report identifies highs and lows in the housing market last year and how it compared to previous years.
“2016 will go down as another robust market defined by record-low inventories and record-high prices,” states Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent.
“First, housing inventory has been an issue as evidenced by historically low numbers for the past three years,” he said. In February, DMAR recorded 3,963 active listings at month end, representing the lowest number of any month since housing data started being tracked in 1985. December 2016 finished with 4,265 active listings, which was 68.9 percent less than the historical December average of 13,702, and beat the previous December low in 2014 at 4,355.
Also, even though the year finished with 55,634 sold homes, that figure was not enough to surpass last year’s record-high of 56,062. Notably, however, the year-to-date sales volume in 2016 finished at $22,230,011,184 – up 9.22 percent year over year. For further comparison, looking back to 1990, the total sales volume then was $2,411,618,946.
Additionally, the year-to-date average sold price of a home in 2016 was a record high at $399,576 – up 10.06 percent year over year.
DMAR’s 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 2016, 1,290 single family and condo homes sold and closed for $1 million or greater – up 18.46 percent from 2015 and up 182 percent from 2011. The closed dollar volume in this luxury segment last year was $1.97 billion – up 19.55 percent from 2015 and 184 percent from 2011.
For the month of December, the highest priced single-family home sold was $3,390,879 representing four bedrooms, five bathrooms, and 3,361 above ground square feet in Denver. The highest priced condo sold was $2,050,000 representing two bedrooms, three bathrooms, and 2,186 above ground square feet in Denver. The listing and selling agents for both transactions are DMAR members. The number of single-family and condo homes sold in December was down 17.27 percent month over month, and down 26.61 percent year over year.
“Home sellers felt the winter cool down in the single-family Luxury Market in December,” comments Jill Schafer, DMAR Market Trends Committee member and Metro Denver real estate agent. Month over month, sales of single-family homes priced over $1,000,000 plummeted 26.92 percent and the average price dropped nearly 10 percent.
“When you look at the bigger picture, Luxury Market home sellers had a decent run over the past five years,” she adds. “Single-family sales of homes priced over $1,000,0000 increased 19.72 percent this past year compared to 2015, and sales increased leaps and bounds over the past five years with a 176.53 percent jump in the number sold since 2011. Also, Luxury Market home sellers had to keep their homes show-ready for less than half as long as they did five years ago, with an average of 108 days on the market in 2016 compared to 226 days in 2011.”
Schafer comments on condos priced over $1,000,000 stating, “We sold more high end condos in 2016 than any other year on record, up 261.29 percent since 2011. The recent increases were led by 250 Columbine, the high-end condo project in Cherry Creek North. In fact, the highest priced condo sold on record closed this past February at $5,438,873 at 250 Columbine.”
“In the Signature Market, overall for 2016, the months of inventory was tight for condos,” stated Brigette Modglin, DMAR Market Trends Committee member and Metro Denver real estate agent. “Compared to the year prior, condos that sold in the $750,000 to $999,999 price range was up 60.43 percent year to date, and up a significant 632 percent compared to 2011. Sales volume continued to rise too, up nearly 60 percent in 2016 compared to 2015, and up 621 percent from 2011.”
In the Premier Market, 2016 ended with 7,744 home sales in the $500,000 to $749,999 price range, up 24.62 percent from 2015’s record of 6,214.
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