Denver Metro Housing Report for November 2016
Year-over-year average price of homes sold is up 9.96 percent to $398,588. However, the number of homes sold in October dropped 11.43 percent compared to last year, and the pace of new listings coming onto the market is slow with 9.87 percent fewer homes year over year. Notably, 2016 represents a new record low in listings for October with 6,731, compared to the previous low record in 2014 with 6,748 listings. From 1985 to 2015, average active listings for October is 16,615. For comparison, the record high October was 2006 with 29,722 listings.
“With election season coming to an end, an important question we face is how it will affect the metro Denver housing market.” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent.
Historic data shows that during general election years, starting in 1992, metro Denver has averaged an 8.3 percent increase in annual appreciation in housing prices, with the non-general election years averaging a less yet healthy 6.3 percent increase. Danyliw comments, “The data suggests that metro Denver homeowners win during general election years. Reviewing data from the Freddie Mac House Price Index, nationally we see no real change in home prices during the same timeframe. To those who feel uneasy about the outcome of an election, take solace that our local real estate market remains robust.”
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 95 homes sold and closed for $1 million or greater – down 6.86 percent from the previous month, and up 5.56 percent year over year. The closed dollar volume in October in this luxury segment was $142,285,205, down 9.96 percent from the previous month, and up 1.48 percent year over year.
The highest priced single-family home sold in October was $5,900,000 representing four bedrooms, eight bathrooms and 6,774 above ground square feet in Boulder. The highest priced condo sold was $2,300,000 representing four bedrooms, five bathrooms and 4,271 above ground square feet in Denver. Both the listing and selling agents for the two transactions are DMAR members.
“Like the presidential candidates, the single-family Luxury Market tried to remain strong in October and push to a winning year-end,” stated Jill Schafer, DMAR Market Trends Committee Member and Metro Denver real estate agent.
“However, not everything can maintain a continuous statistical climb. The number of high-end homes sold slipped 2.25 percent from September to October. This segment of the market is still a winner with the number of sales 18.65 percent higher year to date compared to 2015, and 48.27 percent higher than two years ago.”
Condo sales priced over $1,000,000 were down 38.46 percent from September to October.
“Like political polls, that figure can be misleading,” adds Schafer. Year-to-date sales of condos priced over $1,000,000 are up 30 percent from 2015, and up 85.71 percent from 2014.
Wondering how the numbers might impact your home's property value or your Colorado home search?