CAR: Home prices up in October

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Highlights:

  • The Colorado Association of Realtors releases October report.
  • CAR report shows homes sale prices in the Denver area rose in October from 2014.
  • CAR shows Denver-area home prices were even up from September.
A snapshot of median home prices in the Denver metro area:. Source: Colorado Association of Realtors.

A snapshot of median home prices in the Denver metro area:. Source: Colorado Association of Realtors.

Home prices in the Denver metro area rose in October and sold at a faster clip than in October 2014, according to a Colorado Association of Realtor report released on Wednesday.

The report showed that the average price of single-family homes and condos jumped 12.1 percent to $399,508 in October from $356,428 in October 2014.

Even on a month-to-month basis, the average price increased 2 percent in October from $391,354 in September, bucking the usual seasonal downard trend, according to the CAR report. The month-to-month increase may have been due to the price mix of homes that closed in October from September.

The average price of a single-family home that sold in October was $400,163, up 11.5 percent from $358,769 in October 2014.

The price of a condos and townhomes showed an even bigger percantage gain, rising 14.8 percent to $296,771 from $223,698 in October 2014.

The median sales price of all homes sold was $351,500 last month, up 13.6 percent from $300,725 in October 2014.

The median price of a single-family home sold was $344,000 up 13.9 percent from $302,000 in October 2014.

The CAR report also showed a 2.0 month supply of unsold single-family home on the market last month, a 23.1 percent drop from 2.6 months in 2014.

There was a mere 1.2-month supply of townhomes and condos on the market last month, a 36.8 percent drop from 1.9 months in October 2014.

A look at historical average home prices in the Denver area. Source: Colorado Association of Realtors,

A look at historical median home prices in the Denver area. Source: Colorado Association of Realtors,

Homes also sold faster last month than in October 2014.

The average days on the month fell 20.6 percent to 27 days last month from 34 days in October 2014, according to the CAR report.

Earlier reports by the Denver Metro Associaton of Realtors and REcolorado, showed similar trends.

The Denver-area housing market reflects the strong local economy, said Peter Niederman, CEO of Kentwood Real Estate.

“Denver is an it city,” Niederman said. “Denver has its mojo back.”

A snapshot of Days on the Market in the Denver area n October. Source: Colorado Association of Realtors.

A snapshot of Days on the Market in the Denver area n October. Source: Colorado Association of Realtors.

The city is drawing well-educated millennials as well as retired people, he noted.

“And companies continue to move to Denver,” Niederman said.

He noted a five to six month supply of unsold homes is balanced.

“Anything under three months is a pretty strong market,” Niederman said.

And while the appreciation of homes has been great, he said he would not mind if it would be cut in half to 5 percent or 6 percent.

“I want to be perfectly clear on this,” Niederman said. “There would be absolutely nothing wrong if we had a three-month or four-month supply of homes and appreciation was in the 5 percent to 6 percent range. While this double-digit appreciation has been great, it’s important that the market remains affordable for all types of buyers.”

A look at historical days on the market. Source: Colorado Association of Realtors.

A look at historical days on the market. Source: Colorado Association of Realtors.

Also, he noted that while the overall market remains very tight that is not true in all price pointes.

For example, for homes priced at $2 million or more, there is almost a 2.5-year supply of unsold homes on the market.

“Most of the demand for housing is in what I call the conforming market, which is a mortgage of  up to $417,000,” Niedman said. Because most buyers are getting conforming loans, “most of the demand for housing in the Denver area is for homes priced below $500,000,” he said.

Meanwhile, he said Denver remains the envy of the country for its vibrant and diversified economy and its quality of life.

“Everywhere I go across the country, people want to know about Denver,” Niederman said.

A historical look the median price of homes in the Denver area. Source: Colorado Association of Realtors.

A historical look at average prices of homes in the Denver area. Source: Colorado Association of Realtors.

Meanwhile, statewide figures reported by CAR included:

  • In the first 10 months of the year, 70,835 homes have sold, 6 percent more than 66,845 in the first 10 months of 2014. In October, there were 6,965 sales, down 2.2 percent from 7,125 in October 2014. That was the fourth consecutive months of declining sales, which is typical for seasonal reasons.
  • The average sales price, year-do-date, was $375,698, up 9.6 percent from $342,939 in the first 10 months of last year.
  • Year-to-date, the median sales price across the state was $304,l00 up 11.8 percent from $271,950.
  • There was a 3.1-month supply of unsold homes on the market in October across all of Colorado, down 26.2 percent from 4.2 months in October 2014.

 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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