CAR: New listings surged in Denver

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Highlights:

  • Colorado Association of Realtors, or CAR, released September report.
  • CAR report covered Colorado and the metro area.
  • This article focuses on CAR data for Denver area.
Months of Supply. Source: Colorado Association of Realtors, or CAR.

Months of Inventory in the Denver area. Source: Colorado Association of Realtors, or CAR.

More homes came on the Denver-area market last month than in any September for at least five years, shows a report by the Colorado Association of Realtors.

New listings rose by 16.6 percent in September from September 2014, the biggest year-over-year percentage increase of any month this year, shows the CAR data.

Even thought the 4,627 homes added to the market in September was the lowest number of new listings since 4,478 added in March, it was the best September for new listings since at least 2010.

“Clearly, this was a record September,” by this measure and most metrics, said independent Realtor Gary Bauer.

While the frenzied sales conditions of the summer and spring have cooled, the month-to-month drop in September was a typical seasonal slowing, Bauer said.

In fact, the CAR numbers show last month remained a strong seller’s market.

There was only a 2.2 months supply of unsold single-family homes on the market in September. The last time it was lower was in June, when it stood at 2.1 months. There was a 2.4-months of inventory on the market in July and August, according to CAR.

The months of inventory last month was down 24.1 percent from the 2.9-months of supply in September 2014.

The last time the MOI had showed a bigger year-over-year decline, was the 25 percent drop in June. For condos and townhouse, the inventory was even tighter, standing at a mere 1.3 months in September.

“The frenzy is over, but the market is still hot,” Bauer said.

“We are seeing more and more homeowners looking to put their home on the market,” he said.

Months of inventory in the Denver area by month. Source: CAR.

Months of inventory in the Denver area by month. Source: CAR.

He said for the past couple of years, many homeowners who were on the fence about selling their homes thought it might be best to wait. And those who did wait were often rewarded with higher prices.

“I think the reality is sinking in that now is a good opportunity to sell your home, as interest rates still remain very low,” Bauer said.

Snapshot of sold listings by month. Source: CAR

Snapshot of sold listings by month. Source: CAR

While it seems less likely that the Fed will raise interest rates this year, there is no guarantee that rates will not be higher next spring, he and other note.

Meanwhile, in the first nine months of this year, the Denver area housing market showed an improvement over the same period in 2014, which also was a good year.

By the numbers, year-over-year key metrics include:

  • New listings up 10.3 percent to 15,518 from 14,074;
  • Pending/Under Contracts, up 11.6 percent to 13,636 from 12,264;
  • Sold Listings, up 11.7% to 12,716 from 11,382;
  • Median Sales Price, up 16.7 percent to $210,000 from $179,900;
  • Average Sales Price, up 15.4 percent to $254,698 from $220,964;
  • Price of List Received, up 1.6 percent to 100.8 percent from 99.2 percent;
  • And Days on the market, down 31 percent to 20 from 29.

With rising prices, the one area that has suffered is the affordability index.

The affordability index stood at 173 at the end of September, an 8.5 percent drop from 189 at of the third quarter in 2014. The higher the number, the more affordable houses are.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 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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