October home price rise, easing election concerns

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October home prices rise, DMAR report.

DMAR data: home prices rise in Presidential election years.

Home prices last month at record levels for an October.

October

A snapshot of listings and sold homes. Source: DMAR.

Whether Hillary Clinton or Donald Trump is victorious in Tuesday’s Presidential election, the real winners may be Denver-area homeowners.

Home prices in the Denver area have risen an average of 8.3 percent during general election years, starting in 1992, according to an analysis of data released on Thursday by the Denver Metro Association of Realtors.

In non-general election years, home prices in the metro area rise slightly less than 6.3 percent, according to DMAR, which also released its October housing on Thursday, which showed that home prices soared last month.

“To those who feel uneasy about the outcome of an election, take solace that our local real estate market remains robust,” said Steve Danyliw, chairman of the DMAR’s Market Trends Committee.

“The data suggests that metro Denver homeowners win during general election years,” Danyliw said.

However, when he reviewed national data from the Freddie Mac House Price Index, “we see no real change in home prices during the same timeframe,” he said.

In any case, Denver-area home prices already have blown past the historic averages during a Presidential election year.

The average price of a single-family home sold last month averaged $440,184, up 9.27 percent from $402,855 in October 2015.

The median sale price of a single-family home was $380,000, a 9.51 year-over-year percent increase from $347,000.

When condos were included in the mix, the average sold price of all homes last month was $398,588, up 9.96 percent from $362,476 in October 2015.

The median sales price of all homes did even better, soaring 12.9 percent to $350,00 from $310,000 in October last year.

Condo prices showed even bigger percentage gains than single-family detached homes.

The average sold price of a condo last month was $293,678, up 11.81 percent from $262,669, a year earlier.

The median sales price of a condo was $245,00, a 15.02 percent jump from $213,00 in October 2015.

Last month’s home appreciation was consistent, if slightly less than, with what has happened all yea.

October

A snapshot of average home prices.

In the first 10 month of the year, the average price of all homes sold was $399,751, up 10.42 percent from $362,029 in the first 10 months of last year.

Luxury home prices were especially strong last month, which has been the trend for most of 2016.

There were 1,077 home sales of $1 million or more last month, up 19.53 percent from the 901 luxury home sales in October 2015.

Meanwhile, the average price per square foot for a luxury home in October was $290, up 4.69 percent from $277 in October 2015.

A $5.9 million sale of a single-family home in Boulder was the most expensive home to sell in the metro area in October.

That 4-bedroom, 8-bathroom home had 6,774 square feet above ground.

The most expensive condo to trade hands last month sold for $2.3 million. That Denver condo has four bedrooms, five bedrooms and 4,271 square feet.

“Like the presidential candidates, the single-family luxury market tried to remain strong in October and push to a winning year-end,” said Jill Schafer, DMAR Market Trends Committee Member.

October

A snapshot of median home sale prices in the Denver area.

“However, not everything can maintain a continuous statistical climb,” she cautioned.

“The number of high-end homes sold slipped 2.25 percent from September to October.”

However, September was the best September on record for luxury home sales.

“This segment of the market is still a winner with the number of sales 18.65 percent higher year to date compared to 2015, and 48.27 percent higher than two years ago,” Schafer said.

Meanwhile, other overall, year-over-year statistics tracked in October by DMAR show:

  • There were 6,731 active listings, down 5.94 percent from 7,156.
  • Some 4,874 new listings entered the market, down 9.87 percent from 5,408.
  • Buyers placed 4,835 homes under contract, up 0.9 percent from 4,792.
  • Consumers closed on 4,294 homes, an 11.43 drop from 4,848 sales in October 2019

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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