Feb 01, 2016

Average Home Price 
& Monthly Housing Report

What a difference a single month can make! Two months ago it looked like we were climbing out of the cellar on the inventory shortage, but last month buyers rushed the market and grabbed-up just about everything available. The surge happened just after a Fed rate hike in December, and it caused the market to spike.

Although Denver's housing market rose by a whopping 30%, it was just the opposite the month prior - down 27%. This big swing isn't completely surprising, because we've been noticing this type of see-saw activity going back to August 2015.

About prices: Townhomes and condos have generated the most appreciation over the last few months. The average condo price is about $275k, higher than its peak in 2016. By comparison, the average single family home price has been down since it peaked last May. Last month it rose just over 2% to $405k.

Over the course of the next few months we'll have to keep an eye on how many homes hit the market. That'll be a determining factor on whether a supply shortage will reignite Denver price appreciation again, in 2016. Some economists think another 5% increase is in the cards, but there are many factors at play. Denver's rental market has begun to level-off, with an influx of new apartments now coming on-line. With our relatively high home prices, fewer renters may jump in especially if their rents stabilize. Folks leaving the Denver area in search of more affordable housing costs could also soften demand. The Spring market will be key, so we'll soon see how all this plays out. Till next month.

If you know of someone who needs to sell a home due to an estate, divorce, relocation, or other circumstance, please let me know. Call or email. I look forward to helping those you know, because they trust you and appreciate your referral. 

Average Home Price & Solds Graphs

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

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.