Wednesday, December 24, 2014

Denver Real Estate Market Update December 2014



By the numbers:

-          The inventory of available homes for sale is 4,821 homes at November month end

-          2,790 homes came onto the market

-          3,408 homes went under contract

-          3,506 homes closed

-          Median sold price of $280,000

-          Average sold price of $328,857

-          Closed dollar volume of $1.2 Billion. 

Monthly Market Recap:

Single Family:                                                                      

Active Inventory is 3,857                                                      

Sold Homes is 2,523                                                                          

Median Price is $314,250                                                      

Average Price is $364,274                                         

Average Days on Market is 39                                                          


Active Inventory is 964

Sold Homes is 983

Median Price is $189,900

Average Price is $237,954

Average Days on Market is 33

Year To Date Market Recap:

Single Family:                                                                       

Sold Homes is 34,449                                                            

Average Sold Price is $361,896                                             

Median Sold Price is $305,000                                  


Sold Homes is 13,191

Average Sold Price is $222,872

Median Sold Price is $180,000

Market Facts:

While the market continues the seasonal slowdown; Buyers remain in the market and when they find the “American Dream” home, they proceed and make an offer with the intent of purchase.

-          Consumer confidence decreased in November to 88.7 down from 93.8 in October.

-          While the inventory of homes available for sale is at an all time low, lifestyle choices continue to be the number one priority of home buyers.
-          Mortgage interest rates fluctuated in October and ended the month with a 30 year conventional rate under 4% and a 15 year conventional rate around 3.0%.

Advice to Sellers:

2015 is around the corner and as a Seller, what can you expect from the Denver home market? Let’s look at the 2015 forecast for the Denver home market: 

-          Buyer demand will continue to be strong,

-          Price appreciation will not be as great as in 2014; but still should be between 3% and 5%,

-          New household formations will increase and multi generationals will be in the market,

Millenials and First Time Home Buyers will participate in the 2015 home market,

-          The Denver home market is expected to be in the top 10 home markets in 2015,

-          Newly built rental properties will be available and compete with the Denver home market,

-          Interest rates are expected to increase in 2015 to around 5%, and

-          New home builders are expected to increase their new home production by 25%.

If your home is on the market or will be soon, how do you satisfy a buyer’s need resulting in the successful sale of your home?  Let’s not forget that buyers have done their homework, know exactly what they want in their new home, and will only compete for the homes of their dreams. 

As such, the homeowner looking to sell one’s home needs a professional who is a local expert, and can assist in the Professional plan to sell one’s home.   

Advice to Buyers:

2015 will bring increased mortgage interest rates, changes to the mortgage lending process, lower price appreciation, and an increase in household formations. Additionally, the number of Buyers will increase due to the Millennial generation and First Time Home Buyers.

Create your home buying plan and stick to it.           

Know what you want in a home, where you want to live, and what price range you can afford.  Complete the pre-qualification process so you know the price range that you qualify for when you are purchasing a home.  Be prepared, manage your expectations, and be open to looking at the entire Denver market.  Reach out to a Professional today about your best options and opportunities to participate and succeed in the purchase of your “Dream” home.