Home prices set November record

Highlights:

  • Metrolist releases November numbers.
  • The average sales price a record for a November.
  • The previous November record was in 2006, pre-bubble.

Metrolist NovemberLast month, Denver-area home prices hit an all-time record for a November, according to a Metrolist report released late Friday.Metrolist reported the average price of a single-family, detached home that closed in November was more than $343,000, but not release the exact price. The previous record for a November was in 2006, when the average price of a home was $316,819. In 2006, the real estate market peaked in most parts of the country. Denver is one of the only cities in the country where prices are higher now than before the Great Recession. In November 2012, the average price of a home was $306,773.

In other words, on a year-over-year basis, prices have risen about 12 percent, while they are up more than 8 percent from the previous record high for a November.

Independent broker Gary Bauer, who later plans to do his own analysis of the data, said record average price is a combination of appreciation and the mix of homes being sold.

Prices also rose more than 3 percent from October, when it stood at $332,184.

When all homes were included, the average price was $312,401, 9.3 percent higher than the $285,664 in November 2012.

Meanwhile, the average price of a condo that sold was more than $200,000, Metrolist said. That compares with $198,080 in November 2012 and $204,808 in October.

Homes also are selling faster.

The average days on the market last month was 44, almost  37 percent drop from 70 in November 2012.

The number of unsold homes on the market fell by 9.4 percent on a month-to-month basis to 8,815 last month from 9,734 in October, while they were flat from the 8,847 listings available in November 2012.

“We continue to see tight inventories and an expected increase in average price across the market,” said Kirby Slunaker, CEO and president of Metrolist Inc.

“November typically sees normal decreases in both listing and sales activity, as many potential sellers wait until after the holidays to list new properties,” he said.

November saw a 24 percent decrease in home sales compared to October, and a five percent decrease year-over-year, which aligns with seasonal lull in sales, he said.

“Our brokers and agents have seen a very busy year with a record setting selling season,” Slunaker said.

“While the market has cooled slightly, as one would expect, the numbers year-over-year are incredible and speak to the growing strength of the Denver metro real estate market.”

There are 3,607 placed under contract in November, a 7 percent drop from the 3,893 in November 2012 and a 34 percent drop from the 4,628 in October. There were 3,500 closings in November, a 5 percent drop from November 2012 and a 24 percent drop from 4,628 in October.

Metrolist recently shifted to the new CoreLogic Matrix MLS system, and more than 10,500 Denver brokers and agents attended training sessions this fall to learn the new platform.

“Denver real estate professionals have done a wonderful job adapting to the new MLS system,” Slunaker said. “Heading into 2014, we are excited about the added functionality and collaboration that Matrix brings to the buying and selling process here in the Colorado market.”

Have a story idea or real estate tip? Contact John Rebchook at  JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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Comments

  1. Excellent news, the double digit returns continue, in stark contrast to Michael Clarkson’s absurd predictions last summer:

    “So, when the pipeline of less expensive listings dries up, the market becomes inaccessible (equity excluded) to 85 percent of the US population.
    This causes the median price to drop as listing prices go up. This gives you the divergence you see now in Denver…and saw in July 2007 and in late 2008, resulting in:
    •Increasing listing prices.
    •Decreasing median sold prices.
    What does this mean?
    If history of prices repeats – which it often does – Denver will see a drop in prices in 2013. And so will other parts of the country with a similar pattern.”

  2. We are in the midst of a multi-year bull market in Denver real estate as I have predicted since 2011. It will last at least through 2015, but probably through the end of the decade, delivering 5-15% yoy returns and ultimately doubling prices from their previous peak.

  3. Fantastic statistics!
    Let’s not take anything for granted!
    We still have major concerns about the Federal budget and mortgage qualification changes. Let’s work together with our elected officials to pave the way for economic growth not deterioration!

  4. I predict that Spring 2014 will be crazy time in greater Denver.
    Bidding wars to return.
    Mark my words so you praise/dump on me in July.

  5. I’m surprised the average price of a home was $306,773, that’s a big higher than I would have imagined. All around, really interesting piece, thanks for sharing :)

    Regards,
    Mike

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