September home data released by DMAR.
Active listings in last month bucked seasonal slowdown.
Strong September bodes well for autumn home market in Denver.
“This fall could still shape up to be the hottest home market in the last decade,” Anthony Rael.
Rael, chairman of the Denver Metro Association’s Market Trends Committee, made that prediction on Thursday, when DMAR released its September Denver-area monthly housing report.
Rael, also a Denver-area real estate agent, made that bullish prediction despite the seasonal slowdown last month that led to a “tapering off after a blistering hot summer,” of home sales that led to record prices and in many cases multiple offers.
Yet, the data from DMAR, a Realtor organization with more than 7,000 members, showed some trends last month that bucked the typical seasonal slowdown.
For example, there were 7,599 active listings on the market last month.
That is a surprising 3.71 percent increase from 7,327 active listings on the market in August. Typically, this time of year, listings begin to drop, as many consumers will pull their homes off the market or not list them, with hopes of attracting more buyers and higher prices in the spring.
That means that prospective home buyers, many eager to lock in mortgage rates that remain at rock bottom levels, have more choices, according to Rael.
Those who wait to buy may face higher interest rates if the Fed raises its rates in December, as many expect, he noted.
There was an especially strong month-to-month increase in the number of condos on the market.
There were 1,578 actively listed condos on the market I September a 7.13 percent jump from 1,473 in August and an even bigger, 9.89 percent increase from 1,436 in September 2015.
There were 6,021 single-family detached homes on the market last month, a 2.85 percent increase from 5,854 in August, and less than a 1 percent drop from 6,080 a year earlier.
At the same time, when DMAR’s Market Trends Committee dove deeper into the data it did find “some concerning trends,” according to Rale.
In September, it took an average of 41.2 days to close a home, a 9.6 percent increase from 37.6 days in September 2015.
For those paying cash, there was little year-over-year change in the time it took to close.
However, it took 43.2 days to close a conventional loan last month, a 9.9 percent increase from 39.3 days in September 2015.
And it took 43.2 days to close a home when the buyer financed the purchase with a FHA loan, a 14.9 percent increase from 38.8 days in September 2015.
Those with VA loans saw the biggest year-over-year increase, with it taking 49.5 days to close those loans, 24.1 percent more time than the 39.9 days it took in September 2015.
Rael does not believe that the delays are caused by the new loan closing disclosure rules called TRID, but as a “direct result of an appraisal shortage.”
Rael has been talking about the appraisal shortage for the past few months.
Meanwhile, by the numbers, other DMAR data shows:
- There were 5,994 new listings added to the market last month, a 2.53 increase from 5,846 in September 2015.
- There were 4,927 homes placed under contract in September, a 1.71 percent increase from 5,846 in September 2015.
- Homes spent an average of 32 days on the market before selling last month, 10.34 percent more time than the 29 days in September 2015.
- There were 4,936 home sales in September, a 5.55 percent drop from 5,226 a year ago.
- The average sales price of all homes last month was $396,706, an 11.87 percent increase from $354,622 in September 2015.
- The median sales price of all homes in September was $348,00, a 12.99 percent jump from $308,000 a year earlier.
- And total sale volume rose 5.66 percent to $1.96 billion, from $1.85 billion a year earlier.
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.