DMAR Real Estate Market Trends Report | NOV. '15
Denver Housing Market Shows Signs of Balancing Trend as Prices Begin to Settle and Seasonal Adjustments Cool Demand
Looking back over a 10-year period of October 2005 to October 2015, the year-to-date residential market has experienced a 28 percent increase in price appreciation.
“October offered up plenty of interesting treats - some were sour and some were sweet,” said Anthony Rael, Chairman of the Denver Metro Association of REALTORS® Market Trends Committee. “The seasonal changes we're seeing now and for the next few months will likely be short-lived and homebuyers will want to take advantage of continued low mortgage interest rates and prices that have settled down after the unprecedented summer.”
According to the October MLS, 5,407 new listings came on the market, while 4,792 homes were placed under contract and 4,332 homes sold and closed. The month closed out with 7,156 active listings – representing a 4.79 percent decrease over the previous month, and six percent more properties than what was available in October 2014. Additionally, homes under contract decreased by one percent, sold listings decreased 16 percent and the total sales volume dropped 14 percent to $1.57 billion from the previous month.
The single family home market saw a seasonal decrease of nine percent in new listings month over month, while the average and median sold prices increased slightly from the previous month at 1.68 percent to $403,795 and 1.76 percent to $346,000 respectively.
The condo market showed the supply of new listings dropped 3.5 percent over the previous month, while the average sold prices ticked up ever-so-slightly by four percent to $263,362 and the median price increased 1.54 percent to $214,500.
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 October 87 homes closed for $1 million or greater – up two percent from the previous month and 17.57 percent year over year. The closed dollar volume last month in the luxury segment was approximately $134.7 million, up 2.4 percent from the previous month and 32 percent year over year.
“A new luxury condo development, 250 Columbine in Cherry Creek North, made a big impact in October’s high-end condo stats,” said Jill Schafer, member of the Denver Metro Association of REALTORS. “Compared to September, there was a 228 percent increase in the number of condos sold in October between the $750,000 to $999,999 price range. About one-third of those sales were from 250 Columbine, the new luxury condo development that broke ground two years ago and had its first closings last week.” The average price per square foot of the units that have closed so far at 250 Columbine is about $600.
The condo market for homes above $1 million also saw a big bump from September to October with the number of units sold up more than 57 percent, and an average price per square foot of more than $500 throughout the metropolitan area.
“Expect to see 250 Columbine making an impact on condo sales stats in the over one million dollar price range in the coming months as well,” adds Schafer.
Homebuyers are still in control when buying single-family homes priced over one million dollars. According to Schafer, there are a lot of choices with just under one year’s worth of inventory. Despite the wealth of options, homebuyers are paying more. The average price per square foot, $262, was up 2.34 percent month over month and up more than 10.5 percent from a year ago at the same time.
The highest priced single family home sold in October was $7,250,000 representing 5 bedrooms, 8 bathrooms and 9,577 above ground square feet in Cherry Hills Village. The highest priced condo sold in October was $3,950,000 representing four bedrooms, five bathrooms and 4,753 above ground square feet in Riverfront Park. Both listing and selling brokers for the single family and condo transactions are DMAR members.