DMAR Real Estate Market Trends Report | OCT. '14
Findings reveal condo transactions are up 25.39% year-to-date in 2014 compared to 2013, while single-family transactions are down 9.66%. Factors are mainly due to lifestyle choices and walkability of urban neighborhoods according to Anthony Rael, Chairman of the Denver Metro Association of REALTORS® Market Trends Committee.
“Many first-time buyers who sat out the summer sales frenzy have decided to enter the market now that prices have cooled,” said Rael. “In general, buyers are less willing to participate in bidding wars, thus significantly driving down competing offers. Additionally, they're sticking to their guns in terms of being picky and not feeling the need to settle. This has sellers becoming more flexible in negotiations and concessions than they were during the peak of the summer market. Mortgage interest rates remain at historic lows and are top-of-mind for buyers and sellers. Overall, DMAR Realtors share the sentiment that it's starting to feel like a balanced market once again.”
Seasonality impacted the September market, but to a lower degree than in recent years. Even though metro-Denver had fewer properties available for sale, year-over-year closings registered an increase of 4.20% and sales volume was $1.5 billion representing an increase of 8.32% compared to the same period in 2013. Single-family homes experienced a decrease of 10.75% fewer sales than the previous month, while the “hot” condo market saw a 3.91% decrease in sales.
Consumer confidence dropped for the first time in four months with a decrease in September to 86.0, down from 93.4 in August. Looking at other notable stats and trends in metro-Denver show the market remains strong however:
- Average sale price for single family homes was $361,307, down 2.36% from August and up 7.13% from September 2013
- Median sale price for single family homes remained unchanged at $310,000 from the previous month, but up 10.27% year-over-year
- Condo market showed an average sale price of $217,792, down 0.76% from August and up 7.34% from September 2013
- Median sale price for condos was down 1.34% to $180,000, but showed a significant year-over-year increase of 13.71%
- The current year-to-date sales volume for residential (single family and condo) was $13.271 billion which represents a 3.18% increase from 2013 and a sizeable 37.73% increase compared to 2012
By the numbers, the inventory of available single family residences and condos for sale was 7,556 at September month end: 5,045 homes came onto the market, 4,622 homes were placed under contract, and 4,737 homes closed at a median sold price of $275,000 and an average sold price of $319,619 resulting in a closed dollar volume of $1.5 billion. The top five counties based on closed transactions in September were Adams, Arapahoe, Denver, Douglas and Jefferson representing 93% of sold homes (single family and condo) and 86% of inventory.