Home Prices Continue to Rise - December Market Report

Posted by Live Urban Real Estate on Wednesday, December 6th, 2017 at 4:08pm.

Denver Home Prices Continue to Rise

Last month’s data was business as usual for Denver’s low inventory, rising value real estate market. In November, the average single family home sold for $479,192. And while a yearly seasonal slow down is underway, year over year data shows the market continuing to thrive. Active inventory decreased as compared to this time last year and the average home price increased year over year. With high demand and low numbers of homes on the market, residential property values continue to bolster, even in this highly valued market! The short of it is that Denver home prices continue to rise steadily.

According to Joe Chang, Denver real estate agent, "Tight supply and sustained demand should drive prices higher into next year."
 

One metric of note from The Denver Metro Association of Realtor’s December numbers is “Days on Market”, showing a 5% increase over last year for all combined home types. This would seem to indicate that homes aren’t flying off the shelf, like the Tickle Me Elmos of the real estate market, as we’ve seen recently in Metro Denver. Could this mean a market downturn is coming?

A bit more digging into the numbers indicates, no. Condos and townhomes account for this “Days on Market” increase: attached homes showed a 38% increase, while single family homes showed an 8% decrease over last year. This is likely due to the luxury condo complexes popping up all around Denver (which would also account for the inventory increase in the attached home market). These luxury condominiums spend longer on the market than typical condos, simply due to their price point. If affordable real estate is Denver’s Tickle Me Elmo, new-build luxury condos are its glossy-maned ponies. Some families will buy their child a coveted pony for the holidays (if they have the money to spend on such a splurge and the roaming place to house such a luxurious gift), but almost everyone wants that laughing monster!

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To learn more about how luxury condo builds are impacting the Denver real estate market, read The Real Estate Paradox.

 

Combined Home Types

METRIC

CHANGE SINCE LAST YEAR

Active Inventory

-7.8%

Average Sold Price

+8.3%

Average Days on Market

+5.3%

Single Family/Detached Homes

METRIC

CHANGE SINCE LAST YEAR

Active Inventory

-11.9%

Average Sold Price

+8.7%

Average Days on Market

-7.3%

Condos and Townhomes (Attached)

METRIC

CHANGE SINCE LAST YEAR

Active Inventory

+6.2%

Average Sold Price

+9.8%

Average Days on Market

+37.5%

*Data acquired from DMAR’s December 2017 Market Trends Report for Metro Denver

 

 

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