DENVER METRO MARKET HIGHLIGHTS: APRIL 2016 Residential Report
Inventory remains low while buyer demands are high!
MARKET DYNAMICS Now that the numbers for April are in, we again have relevant and current data that clearly displays how competitive our market continues to be, and how things are heating up as we approach summer. Compared to the previous month, the Denver Metro Area residential real estate market experienced increases in virtually every category: inventory is on the rise, buyers are out in full force, more homes are under contract, and prices continue to climb.
LUXURY HOMES In April, the luxury price range was heating up the fastest, including the number of homes sold and the number of active listings on the market: 86 homes sold and closed for $1 million or greater, up 18 percent from the previous month and up 19 percent year-over-year; and active listings were up 15 percent from the previous month, and up 19 percent year-over-year. The highest priced single family home sold in April was a 6-bed, 9-bath, 8591-above-ground-square-foot home for $3.95M in Cherry Hills and the highest priced condo sold was a 4-bed, 4-bath, 3450-above-ground-square-foot condo for $1.65M in Denver.
INTEREST RATES Interest rates ticked down slightly from the month prior and remain at historically low levels. The Federal Reserve refrained from raising interest rates in April. Rates will likely remain low, but economists hold firm to their expectations for a rate hike in June and then another by the end of this year, a Reuters poll showed this month.
MARKET SUMMARY If you are seeking to enter the market – as a buyer or a seller – NOW is the time. For sellers, home prices are projected to begin to level off later into the summer, so it’s best to be on the ball. For buyers, interest rates will likely go up in June, and for every 1 percent increase in the interest rate, your purchasing power decreases by 10 percent. That’s significant!
Luxury Homes, Over $1M:
- Units Sold: 86 units (UP 17.8% from March; UP 19.4% from 2015)
- Average Days on Market: 107 days (UP 22.2% from March; UP 5.0% from 2015)
- Average Sold Price: $1,540,605 (UP 0.9% from March; DOWN 2.1% from 2015)
- Active Listings: 836 homes (UP 15.2% from March; UP 18.8% from 2015)
Single Family Detached Homes:
- Units Sold: 3,003 units (UP 5.6% from March; DOWN 4.8% from 2015)
- Average Days on Market: 24.7 days (DOWN 19.5% from March; UP 7.1% from 2015)
- Average Sold Price: $441,186 (UP 2.0% from March; UP 9.2% from 2015)
- Active Listings: 4058 homes (UP 9.5% from March; DOWN 6.9% from 2015)
- Units Sold: 1,239 units (UP 7.6% from March; DOWN 3.2% from 2015)
- Average Sold Price: $285,757 (DOWN 0.1% from March; UP 12.1% from 2015)
If you’re considering buying or selling, or if you simply want to have an in-depth conversation about the current market, please feel free to contact us any time. Let us show you the distinct client services we provide as your Catalyst for Wealth, and bring your greatest expectations. We look forward to having a conversation soon!
*This representation is based in whole or in part on content supplied by REcolorado®. REcolorado® does not guarantee nor is it in any way responsible for its accuracy. Content maintained by REcolorado® may not reflect all real estate activity in the market. (Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert & Jefferson Counties). Prepared by Land Title Guarantee Company