DMAR Real Estate Market Trends Report | MAY '16
Denver-area home prices may be leveling off this summer. Compared to the previous month, the metro-Denver residential real estate market experienced increases in virtually every category.While the average and median sales prices were also up in April, it was only a two percent and 1.45 percent increase respectively. By the numbers, for the entire residential market (single-family and condos), April closed out with 5,221 active listings – representing a 16.5 percent increase in inventory over the previous month and four percent over the previous year. Month over month, new listings are up 12 percent to 6,387, homes under contract are up nine percent to 5,153, and homes sold and closed are up one percent to 4,312. Average and median sold prices of homes edged up again from the previous month with smaller gains of two percent to $398,663 and 1.45 percent to $350,000 respectively. Total sales volume in the residential market year to date was approximately $5.7 billion, up 9.5 percent compared to 2015.
“Close your eyes and imagine the opening chords to the Rolling Stone's song 'Start Me Up' and it will surely do two things – put a smile on your face and get you pumped up!” said Anthony Rael, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “Our Spring real estate market gives me that feeling because it is off to a great start as evidenced by statistical increases in just about every category. I'm happy to report the rate of appreciation actually slowed down a bit which could indicate prices may be leveling off moving into the summer months.”
The single-family market saw new listings jump to 4,702, representing a 13.38 percent increase month over month. Average and median sold prices bumped up from the previous month with increases of 2.7 percent to $443,950 and 2.4 percent to $385,000 respectively. Year over year, single-family home prices were up 10 percent.
The condo market showed the supply of new listings increase eight percent to 1,685 units over the previous month, while the average and median sold prices posted mixed results of -0.07 percent to $286,606 and increased two percent to $240,000 respectively. Year over year, condo average and median sold prices were up 12 percent and 17 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 April 99 homes sold and closed for $1 million or greater – up 22 percent from the previous month and up 34 percent year over year. The closed dollar volume last month in the luxury segment was $153,074,988, up 27 percent from the previous month and up 32 percent year over year.
Total sales volume in the luxury segment increased 27 percent month over month; year to date, that reflects increases of 26 percent compared to 2015 and 59 percent compared to 2014. While the luxury condo market got doused month over month with the number sold down 29 percent from March, year to date the number sold is up more than 72.22 percent from 2014 and 2015.
“While the luxury market is getting stronger, this is still the only price segment where the homebuyers are in control with 8.56 months of single-family inventory at the end of April, and 16.4 months of luxury condo inventory,” comments Schafer. She adds, “Sellers in the Premier Market are smiling these days too. The number of single-family homes sold in this price range between $500,000 and $749,999 was steady from March to April, but compared to this time last year and the year before things looked sunny. The number of Premier Market single-family homes sold so far this year is up 18 percent from 2015 and up an impressive 65 percent year to date compared to 2014.”
The highest priced single family home sold in April was $3,950,000 representing six bedrooms, nine bathrooms and 8,591 above ground square feet in Cherry Hills. Both the listing and selling agents are DMAR members. The highest priced condo sold was $1,650,000 representing four bedrooms, four bathrooms and 3,540 above ground square feet in Denver. The listing agent is a DMAR member.