DMAR Real Estate Market Trends Report | JUN. '16
Denver housing inventory historically peaks in late summer, but that may not happen if the market continues at its current pace.
Homes on the market hit a new record low for the month of May at 5,463 active listings. As reference, the average number of active listings in the month of May is 16,981 (1985-2015). The record high May was in 2006 with 30,457 listings, and the record low May was 2015 with 5,657.
“Ongoing inventory shortages are now spreading across the country,” said Anthony Rael, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “And here we are setting yet another new record low for inventory in May.”
While active listings are only down 3.43 percent year over year, this is the time of year when inventory grows until the market hits its peak in August and September according to Rael.
By the numbers, for the entire residential market (single family and condos), the total sales volume was $7.8 billion year to date, up 8.52 percent compared to last year. Month over month, 6,788 new listings came on the market (up 6.28 percent), 5,857 homes were placed under contract (up 13.66 percent) and 4,861 homes sold and closed (up 7.40 percent). The month closed with 5,463 active listings – representing a 4.64 percent increase in inventory over the previous month – but a decrease of 3.43 percent over the previous year. Average and median sold prices edged up again from the previous month with appreciation gains of 3.72 percent to $412,433 and 3.43 percent to $362,000 respectively. Year to date the total sales volume was $7.8 billion, up 8.52 percent compared to last year.
For the month-over-month single-family home market, new listings jumped to 5,038, representing a seven percent increase over the previous month. Average and median sold prices bumped up from the previous month with increases of 3.07 percent to $456,018 and 3.55 percent to $398,000 respectively. Year over year, the single-family average sold prices were up an average of 8.34 percent. The condo market showed the supply of new listings increased slightly at 3.86 percent to 1,750 units over the previous month, but that was a steep decrease of 10.53 percent from the previous year. The average and median sold prices posted gains of 5.10 percent to $300,348 and 2.08 percent to $245,000. Year over year, average sold prices were up 15.19 percent and 13.69 percent respectively.
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 May 127 homes sold and closed for $1 million or greater – up 25.74 percent from the previous month and up 7.63 percent year over year. The closed dollar volume last month in the luxury segment was $191,203,453, up 22.49 percent from the previous month and up four percent year over year.
The highest priced single family home sold in May was $6,705,241 representing five bedrooms, nine bathrooms and 8,038 above ground square feet in Highlands Ranch. The highest priced condo sold was $3,483,269 representing three bedrooms, four bathrooms and 3,616 above ground square feet in Denver. The listing and selling agent for the transaction is a DMAR member.
“We hit new highs in the Metro Denver luxury real estate market in May,” said Jill Schafer, DMAR Market Trends Committee Member and Metro Denver real estate agent. “The highest priced sale recorded since the first shovel of dirt was turned over in the southern metro suburb of Highlands Ranch, is also the highest price per square foot sold in May. The sale was finalized for a new Highlands Ranch record of $6,705,241, which is a whopping $834 per above ground square foot.”
That sale was more than three times the average price per square foot for homes priced over $1,000,000 that closed in the Denver-area in May, $261 per square foot being the average.
The highest price per square foot for an attached home that sold in May was a 6th floor condo at the tony 250 Columbine in Cherry Creek North. “At 3,616 square feet, the price per square foot works out to be $963,” states Schafer. “That’s 1.7 times the average price per square foot for a condo years to date.”
Schafer adds, “In the single-family Luxury Market, sales were up more than 21 percent year to date in May and attached homes were up 50 percent year to date. It gives a whole new twist to the moniker, The Mile High City.”