DMAR: Home inventory lows here to stay

Highlights:

  • Denver Metro Association of Realtors releases report for December.
  • DMAR report shows record low inventory of active listings.
  • DMAR shows a record year for home sales in 2014.
DMAR snapshot shows active listings vs sold homes.

DMAR snapshot shows active listings vs sold homes.

There were only 4,355 single-family homes and condos on the Denver-area market in December, according to a report released today by the Denver Metro Association of Realtors.

That is even lower than the active inventory of 5,352 homes reported earlier in the week by REcolorado.

In any case, both are record lows. REcolorado (formerly Metrolist) and DMAR use different methodologies for their analysis.

DMAR’s report covers an 11-county area.

“There is no sign this shortage of homes is going to change, at least for the foreseeable future,” said Anthony Rael, chairman of the DMAR Market Trends Committee.

At the end of the year, there was only a 1.29 month supply of unsold single-family homes on the according to DMAR.

There was even a bigger shortage of condos. There was only a 1.04-month supply of condominiums listed, DMAR’s report shows.

The number of active listings for all homes was down 45.16 percent from the 7.941 homes listed in December 2013.

The number of active listings was down 29.65 percent from the 5,420 available in November.

Those hunting for homes may have to get used to a low supply.

“Many Denver Metro Association of Realtors members feel that low inventory levels may be the new normal, at least for the next 12 to 18 months,” according to Rael/

DMAR snapshot of active listings and sold properties.

DMAR snapshot of active listings and sold properties.

The Denver-area remains a strong seller’s market, he said.

“Sellers will continue to have the upper hand hand in negotiations with buyers, but pricing and conditions will need to be justified in order to ensure top dollar,” Rael said in the report.

He said that buyer demand remain patient and prepare to compete until more inventory comes online,” Rael said.

New homes, he said, enjoyed strong foot traffic and sales activity in December.

“The outlook for new builds look favorable s buyers grow impatient waiting for resale to come on the market,” according to Rael.

“The question is, will builders have enough skilled contractors to keep up with demand?”

Other metrics tracked by DMAR for December from December 2014 include:

  • The median sold price of all homes was $287,000, up 14.57 percent from $25o,500;
  • The average sold price of all homes was $340,848, up 13.22 percent from $307,090;
  • Total sales volume was $1.3 billion, up 14.72 percent from $1.15 billion;
  • There were 3,369 sales, up 3.15 percent from 3,751.

There were 2,510 homes placed under contract in December, down 29.36 percent from 3,759 in November. Under contract figures for December 2013 were not available.

Of the 4,355 active listings last month, 3,557 of them were single-family homes, a 44.1 percent drop from the 6,363 in December 2013.

DMAR report shows record prices for homes in December.

DMAR report shows record prices for homes in December.

With such a low inventory of active listings and strong demand, home prices rose to record levels in December.

The median price of a single-family home sold in December was $320,000, up 17.22 percent from $273,000 in December 2013. The average price of a single-family home was $380,548, up 13.79 percent from $334,682.

Condos showed even bigger changes, both in active listings and percentage gains.

The 798 condos listed last month was down 49.43 from the 1,578 on the market in December 2013.

The median price of a condo sold last month was $188,500, up 18.55 percent from $159,000 in December 2013.

The median sales price rose 16.75 percent to $238,220 from $204,044 a year earlier.

The condo sales volume last month rose 55.86 percent to $261 million from $176.5 million in December 2013.

DMAR report shows record prices for homes sold  in December.

DMAR report shows record prices for homes sold in December.

Last year, also a record year in total home sales.

There were about $17.5 billion in single-family homes and condo sales in 2014, a 6.39 percent increase from $16.5 billion in 2013.

In addition, the sales activity generated another $4.4 billion in economic impact, according to the report.

“Our 11-county Denver metro real estate market had a $22 billion on the area economy,” Rael said.

DMAR tracks activity in the counties of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park. Those are the same counties that the closely watched Case-Shiller report tracks. REcolorado tracks activity by its member, regardless of geography.

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 Co. 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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