Real Estate Market Update: Denver Metro

Denver Metro

Average Home Value $464,033

% Change MOM: 3.25%

% Change YOY: 14.39%


Denver Specific

Average Home Value $433.289

% Change MOM: 0.78%

% Change YOY: 9.90%


Aurora

Average Home Value: $272,445

% Change MOM: 0.27%

% Change YOY: 13.30%


Parker

Average Home Value $428,307

% Change MOM: 17.55%

% Change YOY: 30.66%


Lakewood

Average Home Value $309,599

% Change MOM: - 1.53%

% Change YOY: 11.75%


Littleton

Average Home Value $397,527

% Change MOM: -  14.45%

% Change YOY: - 6.49%


Thornton

Average Home Value $300,307

% Change MOM: 4.37%

% Change YOY: 9.89%

10 Days to SOLD, Join the Club!

The Denver real estate market is primed for sellers! Nearly 50% of homeowners, 1,347 homes, in the Denver Metro area sold their homes within 10 days of going active on the market!

Denver homes are 'flying off the shelves,’ no surprises there since Denver is listed as the #1 place to live by US News. 2,732 sellers sold their homes in the Denver Metro area in the first quarter of 2016, up 1% from last year. Denver's market is hot hot hot just as Zillow predicted. The real estate market is showing every indication that the market is prime for sellers. The average days on market continues to drop, down by 6% from last year. The national median days on market in the United States is 96 days. That is almost 3 months, an 86 day difference! Imagine what you could do with all of that extra time! The home sale prices are also on the rise, “single family residence and townhomes rose by 9.8% YOY to $393,684 in March” and “detached homes increased by 8% to $435,796” stated by Molly Armbrister, reporter for the Denver Business Journal, in her article, Competition, prices up as metro Denver home market enters selling season.

Denver buyers are rushing to homes. They need to recognize this is not a Christmas sweater they are purchasing, it is likely the largest investment of their life. They should act accordingly.
— Joshua Hunt, TRELORA CEO and Founder

 

Join TRELORA's math nerds to dive into the numbers to understand the larger effects  of Denver’s hot seller market.

Days on Market

A higher absorption rate, leading to lower days on market.

Average Days on Market

 

Absorption rate is the measure of time it takes for all of the current listings, if the rate at which they are selling remained constant, to completely sell out. According to realtor.com a balanced market’s absorption rate is between 5 – 7 months. The current absorption rate in the Denver Metro area is just 2 weeks! If Denver's active listings remained the same at, 2,732, given the speed at which homes are selling, all the listings in the Denver Metro area would be sold in just 2 weeks.

 

"Continued high demand for homes absorbed most of the inventory, with 4,053 homes selling in the month." [Molly Armbrister the real estate reporter at Denver Business Journal wrote in Competition, prices up as metro Denver home market enters selling season.]


Inventory influx means prices are on the rise. 

Sold Price

In March, over two thirds of the market sold within the price range of 200,000 to 500,000 in Denver. According to Keynesian economic theory, an increase in demand, reflected by a rightward shift in the demand curve, predicts a rise in prices. This price rise occurs independently of the actual value of the home. Will the higher list prices cause homeowners to sell? The assumption is that most sellers are not putting their homes on the market because they cannot find a replacement, not because the sale price of their home is not on target.

The majority of people buying and selling, must sell their home to buy a new one. Most people do not want to take that 50% chance of being homeless.
— Joshua Hunt TRELORA Founder and CEO

Buyers, seasonality is on your side.

Number of Active Listings 2015 vs 2016

Real estate seasonality is on the side of buyers this time of year. Across the nation, March and April see the most search activity from buyers. There is also a lot of search activity in the summer, during June and July, according to Realty Times. "Metro Denver saw 5,706 new listings hit the market last month, an increase of 33.6% from February," Aldo Svaldi, Reporter at Denver Post wrote in his article "Denver home sale listings jump 33.6 percent over record-low February."  Compared to last year the Denver Metro market is down 2%, but the statistics point to an escalation of inventory in the Denver Metro market; inventory is up 33.6% month-over-month. 

If you have any questions, the TRELORA team would love to assist you! Please don’t hesitate to give your local team a ring!

Stay tuned for TRELORA’s future market updates to stay in the know.

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