MADISON Q1 MARKET REPORT
2018 DENVER
Metro Area Real Estate Recap
THESE STATS ARE BASED ON THE FOLLOWING 11 COUNTIES: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park County
JUSTIN KNOLL PRESIDENT, REALTORÂŽ 303-550-0096 JUSTIN@MADISONPROPS.COM WASHINGTON PARK OFFICE
1221 S CLARKSON STREET, SUITE 410 DENVER. CO 80210
As the thaw of winter begins, the Metro Denver market is starting to see some warming with increases in housing inventory and number of homes sold compared to the preceding winter months. With very frustrated buyers and sellers, we have yet to see the effect on affordability, which is the number one concern for real estate professionals around the state. By the numbers, Metro Denver has crossed a crucial threshold of pricing as both average and median single-family home prices set a new record high, reaching $522,277 and $440,875 respectively. In March, 6,335 new listings were added to the market, an increase of 36% from February. That increase was offset by 5,674 listings being placed under contract, showing strong home buyer activity. Active listings in the residential market were at 4,619 total units in March and the number of sold listings increased by 26% compared to the previous month. That number dropped 12% from last March and year to date, 10,577 total homes have sold, down 6% from 2017. Condos are lasting a little longer on the market, increasing to 71 days compared to 36 days last March, while the most active price segment for the single-family market continues to be $300,000 to $399,999, and $200,000 to $299,999 for condos.
The average sold price for single-family homes increased 3.77% month over month to $522,277, while the median price also increased 1% to $440,875. The year-todate average sold price hit $507,293, up 11% from last year, with the median sold price at $432,000, up 9%. The condo market continues to outperform singlefamily homes with the average sold price of $348,045, representing a 15% increase compared to 2017, while the median price of condos sold also increased by 16% to $294,700. With the busiest three months of the real estate year upon us, we do expect more of what we have experienced the past few years with low inventory, rising prices, competing offers and expected increases in interest rates while a bit of a shift in our market may begin to occur in 2019 and into 2020. Nothing drastic, but perhaps a leveling off of supply and demand issues to relieve some pressure on affordability could be a welcome sight. The need for a strong RealtorÂŽ that can help maneuver these challenges remains a must for serious consumers who understand the real challenges in closing on a home. - Justin Knoll, President Madison & Company Properties
Single Family - Detached THIS REPORT IS BASED ON 11 COUNTIES Quarter One 2018 JANUARY
FEBRUARY
2,916
3,314
MARCH
4,557
TOTAL New Listings
TOTAL New Listings
TOTAL New Listings
Increase from 2017
Increase from 2017
Decrease from 2017
----10.12%
----1.47%
-----8.90%
AVERAGE DAYS ON MARKET
44
JANUARY
40
FEBRUARY
32
MARCH
TOTAL SALES VOLUME YEAR TO DATE
2018
$3,727,081,671
2017
$3,646,154,552
2016
$3,164,995,846
According to Denver Metro Association of Realtors, current days on market is DOWN -21.95 PERCENT from just a year ago in March 2017.
CLOSE PRICE TO LIST PRICE QUARTER ONE
99.27% JAN
99.98% FEB
100.56% MAR
Single Family - Detached // Month OVER Month Recap
6,000
5,000
4,000
3,000
2,000
1,000 MAR 17’
APR 17’
MAY 17’
JUN 17’
JUL 17’
AUG 17’
SEP 17’
OCT 17’
NOV 17’
ACTIVE
DEC 17’
JAN 18’
NEW LISTINGS
FEB 18’
MAR 18’
UNDER CONTRACT
SOLD
AVERAGE SOLD PRICE AT MONTH-END (MARCH)
$522,277
$490,932 in January • $502,986 in February
A LITTLE TIDBIT A recent survey shows baby boomers want high-speed internet and to live near grocery stores and hospitals. Over 90% said they plan to stay in their home. The more who stay in their homes, the less resale homes are available for new buyers.
Single Family - Attached // condo THIS REPORT IS BASED ON 11 COUNTIES Quarter ONE 2018 JANUARY
FEBRUARY
1,266
1,324
MARCH
1,778
TOTAL New Listings
TOTAL New Listings
TOTAL New Listings
Increase from 2017
Increase from 2017
Decrease from 2017
----8.95%
----.023%
-----2.79%
AVERAGE DAYS ON MARKET
70
JANUARY
72
FEBRUARY
71
MARCH
TOTAL SALES VOLUME YEAR TO DATE
2018
$1,124,185,350
2017
$987,893,524
2016
$846,439,704
Contrary to detached, single-family current days on market for attached single-family is UP 97.22 PERCENT from just a year ago in March 2017.
CLOSE PRICE TO LIST PRICE QUARTER ONE
99.65% JAN
100.26% FEB
100.78% MAR
Single Family - Attached (condo) // Month OVER Month Recap SINGLE FAMILY DETACHED // NEW LISTINGS 3,000
2,500
2,000
1,500
1,000
500 MAR 17’
APR 17’
MAY 17’
JUN 17’
JUL 17’
AUG 17’
SEP 17’
OCT 17’
ACTIVE
NOV 17’
DEC 17’
NEW LISTINGS
JAN 18’
FEB 18’
UNDER CONTRACT
MAR 18’
SOLD
AVERAGE SOLD PRICE AT MONTH-END (MARCH)
$351,044
$354,613 in January • $345,632 in February
A LITTLE TIDBIT New construction seems to have taken over single-family rehabs in the often overlooked Avondale/Villa Park neighborhoods. There has been an increase in affordable, transit-focused new construction of townhomes, duplexes and condos clustered near the light rail at Knox Ct. Station, Perry St. Station, and Sheridan Station, which seems ideal for established millennials, active boomers and downtown commuters.
THE SNAPSHOT DENVER METRO REAL ESTATE MARKET
Active Listings vs Sold Listings
ECONOMIC INDICATORS QUARTER ONE 2018
NATIONAL The National median sales price is $241,700. A 5.9 PERCENT increase from last year.
5.9%
$$$
AFFORDABILITY
71%
Denver Metro homebuyers need an average ANNUAL SALARY OF $79,180.65 in order to afford a median-priced home, according to a quarterly update from HSH.com, a mortgage research firm.
SHORT-TERM RENTAL According to a Denverite article, 71 PERCENT OF AIRBNB HOSTS are complying with the law to get a short-term rental license. There are $4.5 MILLION Airbnb listings worldwide.
23.7%
SOLD
RESIDENTIAL BUILDING PERMITS
0.3%
RESIDENTIAL BUILDING PERMITS DECREASED 0.3% from January to February 2018 (2,242). Year to date, RESIDENTIAL BUILDING PERMITS ARE UP 23.7% (4,671) through February 2018. *Sources are located on the back cover.
MARKET TRENDS LUXURY // SIGNATURE // PREMIER “The higher end market really came to life at the end of the winter as single-family homes priced over $1,000,000 were up 52 PERCENT FOR SALES IN MARCH compared to February, and year-to-date luxury homes sales have tripled over the past four years. At this point in 2014, there were only 121 luxury homes (single-family and condos) that sold year to date compared to 381 that have sold through March of this year. “ - Justin Knoll
LUXURY MARKET Properties sold from $1 Million +
LIST TO CLOSE PRICE YTD
AVERAGE SOLD PRICE:
2018
2017 2016 2017 2017
171 2015 2017
121
97.08%
220
AVERAGE DAYS ON MARKET YTD
283
109
381
SOLD LISTINGS YTD
2014
$1,505,873
SIGNATURE MARKET
Properties sold between $750,000 - $999,999
98.84%
2018
LIST TO CLOSE PRICE YTD
AVERAGE SOLD PRICE:
2017 2016 2017 2017
2015 2017
175
AVERAGE DAYS ON MARKET YTD
251
392
91 DAYS
321
506
SOLD LISTINGS YTD
2014 2017
$848,641
PREMIER MARKET
AVERAGE SOLD PRICE: $847,298
Properties sold between $500,000 - $749,999
AVERAGE SOLD PRICE:
2018
2017 2016 2017 2017
733
LIST TO CLOSE PRICE YTD
1,079
99.66%
1,286
AVERAGE DAYS ON MARKET YTD
1,771
91 DAYS
2,145
SOLD LISTINGS YTD
2015 2017
2014 2017
$590,170
MADISON & COMPANY PROPERTIES | WWW.MADISONPROPS.COM | 303.771.3850 Š2018 Madison & Company Properties, LLC. Madison & Company Properties is a registered trademark licensed to Madison & Company Properties, LLC. Locally owned and operated. An equal opportunity company. All information deemed reliable but not guaranteed. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Sources: DMAR Market Trends, MetroDenver Economic Development, Denver Post, US News, Airbnb.com.