DMAR Real Estate Market Trends Report | JUL. '15
Our July Denver Metro Real Estate Market Trends Report is here!
Denver Housing Market Sets Records in June, Yet Sellers Sensing the End of the Frenzy While June was a record breaking month in several categories, Denver REALTORS® describe the market as easing up and cooling off as we enter the prime home buying season. Home sellers are likely beginning to sense a slight shift in the market as overpriced listings are correcting to sell at fair market value. Anthony Rael, Chairman of our Market Trends Committee, highlights:
“The sweet sound my fellow Denver Metro REALTORS® heard in June was 10-10-10, or as any Northsiders commonly refer to as, ‘an ace, a deuce and a tre‘. So what exactly was the significance of 10 at the end of June as it relates to the residential market? How about a 10 percent increase in active listings, sold properties, and a record-breaking $2.15 billion in overall sales volume compared to the previous month?”
The Denver residential market (single-family and condos) replenished itself with 7,130 new listings, while 5,823 homes were placed under contract and 5,695 homes sold and closed. The month of June ended with 6,197 active listings – a 10 percent increase over the previous month, but still 20 percent less year over year. Rael stated:
“The month-over-month increase in listings is likely due to seasonal increases and a general ‘cooling’ due to record high pricing. Sellers are feeling the slight shift in the housing market and are now accepting good offers, and some home buyers are even finding a little negotiating room.”
Despite the slight cooling in the market, June still set records in home prices and closed dollar volume, as the lack of inventory available in the Denver-area over the last 18 months is continuing to drive prices upward. Month-over-month, the average sold price and median sold price for single-family homes inched up slightly, with a 0.94 percent increase to $424,609 and 0.84 percent increase to $362,000 respectively. The condo market showed a minor dip in average prices with a 0.21 percent decrease to $260,243; however, there was a 1.28 percent increase in the median price to $217,999.
Current days on market (DOM) continued to decline from the previous month by eight percent, or 25 days for detached single-family homes and 18 days for condos. Rael adds:
“Record high home prices are discouraging and eliminating some buyers from the market, but with recent price reductions and the end of the frenzy, sales remain strong.”
Our monthly report also includes statistics and analyses in the 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 2015, 132 homes closed for $1 million or greater. The closed dollar volume last month in the luxury market segment was approximately $190 million, up five percent from the month prior and 28 percent year-over-year. Jill Schafer, a member of our Market Trends Committee, stated:
“Last year condo sales averaged $566 per square-foot, but in June the average price per square-foot was down more than 12 percent to $496. However, single family luxury homes over a million are trending the other direction – a year ago the average price per square-foot was $247, and now it’s all the way up to $286!”
The highest priced detached single-family home sold in June was $3,850,000 for representing five bedrooms, eight bathrooms, and 7,486 above-ground square feet in Cherry Hills Village. The highest priced attached single-family (Condo) sold in June was $1,740,000 representing two bedrooms, three bathrooms, and 3,061 above ground square feet in Cherry Creek. The listing and selling agents for both transactions were DMAR members. Jill Schafer, DMAR spokesperson said:
“June ended with 5.25 months of inventory, which is considered a neutral market with neither buyers nor sellers having the advantage, it will be a while before the scales tip toward sellers of homes in the higher end of the market with homes above $2 million. The number of homes sold for $2 million and up at the end of June was the exact same as it was a year ago at this time – no fireworks there.”