DMAR Real Estate Market Trends Report | SEP. '14
DMAR’s report indicates Denver’s market conditions remain strong despite slowing due to seasonality adjustments. Now is a good time for buyers and sellers, as evidenced by lower interest rates, down to 4 percent last month, along with trending data showing an increase in home affordability and continued rise in consumer confidence.
The slowing trend is apparent though, as last month, single-family residential listings experienced an 11.35 percent dip in homes sold compared to the month prior, and the condo market experiencing a 7.87 percent decline as well. Notably, the average sold price for single-family and condos is up 5.77 percent year-over-year, and median price increase of 7.71 percent.
“Buyers had much less urgency about finding a home in August as they were in previous months during the frenzy,” states Anthony Rael, Chairman of the Market Trends Committee for Denver Metro Association of REALTORS®. “As things slowed down and sellers jumped into the market late, some were left wondering where the sea of buyers and multiple offers had gone. Many who priced at the top of the market found themselves with fewer requests for showings, were sitting on the market longer than expected, and eventually had to entertain lower-priced offers.”
Inventory still remains an issue for Denver’s real estate market. The notable drop in the number of homes that went under contract in the month of August, indicates a decline in future sales, however, this is to be expected given typical seasonality adjustments.
According to Rael, “Seller's who wish to sell for top-dollar will have to seriously consider making some updates such as carpet, granite and appliances, or have more realistic expectations on the price they are likely to receive without these updates.”
The hot price range for single-family homes continues to be $200k to $299k, and $100k to $199k for condos. In August, the average sale price was $330,245 (down 1.48 percent from July), while median sales price totaled $277,900 (down 1.80 percent from July). Year-to-date, sales of single-family homes is down 10.93 percent, but the condo market has experienced a 23.04 percent increase in sales. Despite the August trends showing a slowdown in the market, our market’s future looks good, with all signs indicating a “hot” fall season for metro Denver real estate.
“Many brokers, including myself, remain confident the market will bounce back in September, and the selling season will remain strong heading into fall and throughout the holidays,” says Rael. “In addition, the drop in interest rates and boost in affordability, make this a great time for buyers who may have missed out during the frenzy to get back into the hunt for a great property, and perhaps even have a little negotiating power.”