From 1985-2015, February has averaged 14,979active listings. The Denver-area had a record high of 25,484 in 2006, andclosed out February 2016 with ahistorically low 3,963active listings representing a six percent decrease ininventory over the previous month and 2.8 percent decrease year over year.
œMarket activity is picking up, but home sellers appear to be holding out for the upcoming spring frenzy in April and May, said Anthony Rael, Chairmanof the DMAR Market Trends Committee and Denver real estate agent. œThis spring is shaping up to replicate lastyear's market of high demand significantly outweighing supply.
Digging into the February MLS housing stats for the entireresidential market (attachedand detached properties), 4,269newlistings came on the market (up 11 percent compared to the month prior),4,151 homes were placedundercontract (up 15 percent) and 2,753 homessold andclosed (down seven percent). Average andmediansoldprices edged up from the previous month with gains of 1.5 percent to $377,917 and 3.4 percent to$330,000 respectively. Comparatively, the year-over-year increases were much more substantial with averages of nine percent and 11.66 percent respectively.
Notably, Rael comments, œHomes priced below $325,000 are in such high-demand that multiple offers well over list price will continue to be the norm until more listings comeonline.
Homeowners who bought in 2008-2011 are œcashing out and moving up. With significant equity to roll over into a new home coupled with incrediblylow interest rates, this segment of homeowners is realizing œbig-time buying power.
If you're wondering how this market movement might be impacting your home's value, reach out to a Live Urban agent at 303-455-5483, text us at 303-945-5998, or click here.
We always get questions about what Live Urban agents are experiencing as they help their clients navigate the ever-changing Denver Metro housing market. Below are a few of their comments...read them in fullbelow!
-Things are picking up but I'm still sensing a lot of hesitancy in themarketfrom both buyers and sellers. Buyers are skittish with all the election fear-mongering and news of Denver being such a hotmarket; sellers are wanting to hold out for the frenzy in April/May. I think spring will be similar to last year due to demand significantly outweighing supply.
-It's still warm in the lower sector. Had 7 offers on the 2 bed/2ba Denver-Aurora condo; offer chosen was cash. Other buyers decided not to make offer when I told them all were over asking. Makes me subsequently nervous for a move up buyer selling a 2 bed/1 ba condo in Lakewood and looking to buy in the $250K range in western part of city. Excited to work with another first time buyer couple hopefully soon, have 2 empty nesters coming in June with big houses to sell and downsizing to buy. Have my own huge suburban home to sell that's had renters for the past 2 years. The bigger homes make me nervous - $700+ not in the hot central Denver area.
-Themarketis beginning to heat up. Definitely a seller'smarketand think March is going to be nuts. Doesn't seem as busy as last year because of the lack of inventory but the good homes on themarketare getting well over asking with multiple offers. Working all type of buyers and all are proving challenging for buyers. I think March is when it will take off. May not be as crazy as last year because of the lack of inventory but if more homes come on themarket, it will be very busy.
-Working w first time buyers at 250K - insane number of offers. We were able to beat out 9 offersw a great lender who made calls on aSundayand by having the buyers meet the agent at an open house. Personal letters really working inentry levelmarket. Mid/High not quite luxurymarket- 700s-900s. Properties are sitting. Builders are just starting to negotiate for the first time in a long time, if they are motivated. Many overpriced properties are sitting, with sellers being unrealistic about what they can get. Condomarketaround 225K- this is a nightmare for buyers. Extremely low inventory and a grab fest on good ones. Themarketstarted slower this year. At the entry level of themarket, it will be crazy again this Spring. At the higher end (800s+), buyers expect more and are taking their time Higher rental vacancy rates (11% in downtown?!)may slow investor purchases. We all need to be aware of the overbuilding of apartments. 1BR rents seem to be dropping. We'll see if it is just seasonal.
- I have one client under contract after three weeks of shopping. Multiple offers (3 total) and the got it at list price. It is way out in Southeast Aurora. The first weekend after the super bowl the Bronco Effect was totally true. We hit one open house that had easily 10-15 agents in it with their clients. You can still get a lot of house out there for under #300k. I think Spring is gonna be a lot like last year, and I think it will hit at the beginning of March...especially if the warm weather holds.
-Things are busy right now, I have four listings and three buyers. They are all over the place in terms of price $750-$160, two out of state buyers looking for rentals/second homes here in Denver as well as first time buyers who just moved to town. Seems like there are still a ton of people moving to Denver. I am seeing a few more listings come tomarketbut it seems like things are still moving fast. I spoke to one listing agent for a cute condo in Lakewood and she had 17 offers for a unit under 200k. It feels like spring is going to be busy.
-I am just starting to pick up again with buyers. A few referrals came in - one a relocation, one a first-time home buyer and the other just recently moved here.Marketunder 300k continues to be very competitive with multiple offers. I am not expecting things to be much different than last spring. We're going to need to be creative and buyers are going to need to be flexible and giving to get under contract. My clients in the 600-700k also dealt with a lot of interest on a home that was completely updated. That's a tough price range - not much available so far and when it becomes available it needs work. That's a bit hard to swallow for people moving up and expecting more for their money.
-Themarketis still really low on inventory and we are finding it to be very competitive. We have buyers ranging from $400-$900 and have encountered multiple offer situations at all price points. Spring looks very promising, we have a few listings coming on and hopefully this will be the trend so that there is more inventory for buyers.
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