Aug 31, 2013

August 2013 Denver Housing Report (archived)

- originally posted August 1, 2013 -

So much to talk about this month.
Home prices have continued to climb, while multi-family properties (townhomes, condos, lofts) have flattened.

The market frenzy that fed our price increases this year through June, was as much about a shortage of inventory -as it was the very low interest rates.  With interest rates rising by almost a full percentage point this past 45 days, and inventory continuing to grow (albeit slightly), some of the driving forces behind price increases are finally beginning to slow.  

The list-to-sold graph shown in red, below, illustrates that the Denver Market finally broke through the "list price" ceiling last month.  On average, buyers paid 101% of "list" for their home purchases.  Rarely does this happen.  I don't recall the last time it happened in Denver, and I've been selling real estate for over 25 years.  But because so many buyers were scrambling to get into a house before rates jumped, surely it put significant pressure on most buyers.  Many buyers were simply tired of 'losing out', and they simply overbid just to get the house.  

With inventory and interest rates in climbing mode, we should see the market begin to settle down.  The first indicator of this was last months sales that actually showed a drop by 100 units, to 5566 total sales.  That number is still very high, so I'm not suggesting the market is weakening.  

Another key observation is that both average and median home prices continue to rise.  While the average price has risen to $318,541, the majority of sales are still occuring well below that.  The mediam single family home price is $290,000, and $164,950 for condos.  As these numbers continue to rise and the market continues to strenthen, we should see more homes come to market.  Many sellers will be looking to move-up, and that will help to balance the lopsided market we've experienced to date, favoring mostly lower-priced home sales.

Till next month,

 

Average Home Price & Solds Graphs

 

 

 

 

Average Home Price, Inventory, & Days-On-The-Market Graphs

 

 

Check Out Today's Interest Rates

Today's Interest Rates

 

Get It Monthly - Average Home Price & Trends!

We subscribe to a variety of data sources that helps us evaluate Denver's average home price and trends report, for our clients. If you'd like a copy of our Average Home Price & Trends Report for Denver, simply send us the easy form below.

Originally posted at: Average Home Price And Trends Report. Data provided by Metrolist. Graphs copyright© Michael Dagner Group. All information deemed accurate, but cannot be guaranteed. Image attribution - percent - www.sxc.hu