Sold homes in August dropped 8.5% in the metro Denver area
Sold homes in August dropped 8.5% from the same month in 2016 for the metro Denver area, and a similar drop to that seen in July, when 8.3% fewer sold homes than in July 2016, according to the latest report from the Denver Metro Association of Realtors. In August, a total of 5,124 sold homes, however, year-to-date, 38,553 properties have sold, which is an increase of 4.35% from last year and a record high. The number of listings that sold in August decreased 5.79% compared to the previous month. The average price of a home in metro Denver, including both detached homes and attached condos and townhomes in August, decreased 2.75% from previous month to $434,478, however, the price is still over 8% higher when compared to last year. Active listings for the month of August totaled 7,360, virtually the same as the month prior. Just like last month, condo inventory continues to outperform the single-family segment. Condo inventory is up 17.18% year-over-year while single-family active inventory is down 3.76%. The number of days homes were on the market before selling increased slightly in August. Homes currently spent an average 24 days on the market in August, two days more than last month and two days more than this time last year. There is only 1.4 month supply of home inventory in Denver, with only San Francisco (1 month) and Seattle (1.3) lower.
However, as we head into fall, moderating prices and steady inventory levels could offer buyers the incentive they need to jump into the market.
There is a new normal in homes priced over $1 million
Homes priced over $1 million is still experiencing an increase of 4.65% in the number of sold homes month-over-month, compared to a year ago. In 2014, there were 581 sales over $1 million and this year-to-date there were 1,136, an astounding increase of luxury buyers in just a three-year span. Furthermore, the number of condos sold for over $1 million has more than doubled in just two years, with 118 sales year-to-date.
Metro Denver’s economic growth outpaces the national average for metro areas, growing at a pace of 2.4% in 2016, outpacing the average growth rate of the nation’s metro areas, according to a new report from federal Bureau of Economic Analysis.
The city of Denver reached a 100-year agreement for $1 billion overhaul of stock show grounds. Construction is expected to start in October 2019. Once completed, the revitalized complex, with 100 new events added to the year-round schedule, is expected to lure an additional 1.1 million visitors to the center, up from the current annual stream of 1.2 million visitors to the stock show complex, according to the city.
Denver apartment rent hikes cool slightly in August to 3.1% year-over-year, according to the latest report from Zillow. Yardi Matrix estimates that 7,600 new apartment units will be coming online this year, which is showing the year-over-year rent growth.