MADISON Report Q2
Market Recap
Q2 As we find ourselves in the middle of another summer season, it is clear that Denver is the place to be for people around the globe. For us natives, we know just how amazing the warm days and cool nights can be. We know what it’s like to have a pick of any imaginable outdoor activity right in your backyard. We know about the music, arts and entertainment all around us, topped off by the premier beer and food scene in the nation. We know these things and we are lucky enough to live here to enjoy it. What we are discovering for the first time is the unprecedented demand for housing in the Mile High City. Sure, we have seen our Real Estate market boom and bust at times but never like this. Denver is now an international city. A place where the limits are endless and the energy is palpable. More people under the age of 34 moved to Denver than anywhere in the US last year and that trend is sure to continue. During the 2nd quarter of 2015, Denver was ranked as the hottest market in the nation by realtor.com. Supply and demand issues mirrored that of Q1 but things picked up even more. The housing supply in Metro Denver was 5 times less than the National average while the number of homes sold increased by nearly 5% during the quarter. Buyers are scooping up any home they can get their
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hands on and are paying a premium to do so as average sales prices topped the $400,000 mark for the first time ever in April and buyers purchased a record $2.15 billion worth of homes in June alone. While we expect to remain one of the nation’s strongest markets in 2015, we do anticipate to see a bit of a slowdown, typical with seasonality. Over the past two months we saw an increase of homes coming on the market. That, coupled with even a slight decrease in demand should give some relief to frustrated buyers who are looking to negotiate on the right home. Interest rates have begun to increase which may send some buyers to the sidelines, thus taking some of the advantage away from sellers who became accustomed to receiving 5 or more offers on their home with hours of listing it. For many of us, we welcome the return of a more stable and balanced Denver housing market.
Justin Knoll, President Madison & Company Properties
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Indicators
h
denver homeowners Nearly 66% of Colorado’s 5.3 million residents are homeowners.
2015
Economic
Q2
Unemployment
Down 1.3% from 2014 YTD average of 4.2%
h
h
DIA PASSENGERS Down 0.6% YTD passengers decreased through April 2015
SOLD
foreclosures Down 96.7% since 2014
growth in colorado jobs
Colorado professional and businesess services sector projected to increase 3.3%, or 12,800 jobs.
* Source: MetroDenver Economic Development Corporation, Colorado Realtors
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MADISON
2015
Q2
REPORT
Residential - Single Family Detached END OF Q1 (MARCH) - END OF Q2 (JUNE)
ACTIVE LISTINGS
YTD 2015
28
h
prior quarter
Avg Days on Market
5,031
YTD 2014
$356,000
Median Sold Price
h
YTD 2013
13,651
h
10,698
h
6,287 7,558
Total Homes Listed in the Second Quarter
Total Homes Sold in the Second Quarter
-36%
+ 7%
prior quarter
+ 36%
prior quarter
+ 70%
prior quarter
Average Sales Price
$424,609
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MADISON
2015
Q2
REPORT
CONDO - Single Family Attached END OF Q1 (MARCH) - END OF Q2 (JUNE)
ACTIVE LISTINGS
23
$212,000
h
3,228
h
+ 39%
4,272
h
+ 65%
Median Sold Price
YTD 2014
1,504
YTD 2013
1,629
- 43%
prior quarter
Avg Days on Market
YTD 2015
1,166
h
Total Condos Listed in the Second Quarter
Total Condos Sold in the Second Quarter
+ 7%
prior quarter
prior quarter
prior quarter
Average Sales Price
$260,243
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MADISON
2015
Q2
REPORT
Single Family - Attached | 11 County Overview Active
7,000
New Listings
Under Contract
Sold
6,000 5,000 4,000 3,000 2,000 1,000
Jun, ‘14
Jul, ‘14
Aug, ‘14
Sep, ‘14
Oct, ‘14
Nov, ‘14
Dec, ‘14
Jan, ‘15,
Feb, ‘15,
Mar, ‘15
Apr, ‘15
May, ‘15
Jun, ‘15
Single Family - Detached | 11 County Overview Active
New Listings
Under Contract
Sold
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200
Jun, ‘14
Jul, ‘14
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Aug, ‘14
Sept, ‘14
Oct, ‘14
Nov, ‘14
Dec, ‘14
Jan, ‘15,
Feb, ‘15,
Mar, ‘15
Apr, ‘15
May, ‘15
Jun, ‘15
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MADISON
2015
Q2
REPORT
Days on the Market | Single Family vs Condo 55 Single Family
50
Condo
45 40 35 30 25 20 15 10 Jun, ‘14
Jul, ‘14
Aug, ‘14
Sep, ‘14
Oct, ‘14
Nov, ‘14
Dec, ‘14
Jan, ‘15,
Feb, ‘15,
Mar, ‘15,
Apr, ‘15,
May, ‘15,
Jun, ‘15
Residential | Average Sold vs. Median Sold Price Average Sold
Median Sold
$400,000 $375,000 $350,000 $325,000 $300,000 $275,000 $250,000 $225,000 Jun, ‘14
Jul, ‘14
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Aug, ‘14
Sep, ‘14
Oct, ‘14
Nov, ‘14
Dec, ‘14
Jan, ‘15,
Feb, ‘15,
Mar, ‘14,
Apr, ‘15,
May, ‘15,
Jun, ‘15
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REPORT
2015
MADISON
Q2
Month End Active Listings VS Month End Sold Listings
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2015
MADISON News
Q2
18-story apartment tower brings more luxury living to Denver While not an official Denver neighborhood, These are no mere apartments, intended the Golden Triangle is still one of Denver’s for those seeking luxurious living, Eviva oldest communities. Cherokee will include the standard Bordered by Colfax, Speer, Lincoln, and studios, one- and two-bedrooms, as well Broadway, the area is filled with Denver as several two-story walk-up townhomes. landmarks, including the Denver Art Museum, Civic Center Park, the Clyfford Still Museum, History Colorado, and the Denver Public Library. Soon a new building will join these Denver classics.
“Eviva Cherokee is designed to attract renters of all ages from Gen-Y to baby boomers looking for a new standard of luxury living in a thriving neighborhood,” said Christopher Martorella, president of Eviva Cherokee, an 18-story apartment Integral’s commercial real estate division. complex is being built by The Beck Group The building is anticipated to bring new at 1250 Cherokee Street. Construction is vibrancy and life to an already amazing expected to be completed by Fall 2016. neighborhood.
New Buildings Cater to Growing Denver
Holland Partner Group and North America Sekisui House LLC are working with Whole Foods, developing a $240 million project they project will be completed by 2018.
“As new apartment buildings rise throughout the Denver metro area, it’s critical to be able to provide services and amenities that not only accommodate apartment residents, but also meet the needs of the surrounding community,” said The ground floor of the structure will Peter Petricca of Holland Partner Group. be Whole Food’s new 56,000 squarefoot flagship store in Denver, topped “We believe the addition of the Whole with three levels of covered parking and Foods market to our development builds ten stories for the 580 apartments the upon the quality of life downtown and is a building will hold. game-changer for the City of Denver.”
In addition to residential space and the Whole Foods, Pivot will house a “grand Vibrant Downtown Denver is ever-growing hall” area, a private theater, a kitchen/ and expanding, catering to a business bar, and fitness area, as well as three community and the nighttime lifestyle. outdoor areas with swimming pools and outdoor kitchens and fireplaces. The new Pivot Denver building, previously known as 17W, is a perfect addition to Developers are excited for the addition the exciting Union Station area. Pivot will bring to the neighborhood. Photo courtesy of the Denver Post
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Photo courtesy of Denver Business Journal
Whole Foods hopes to open by September 2017, with the rest of the building being completed by Spring 2018. “Pivot is really an extension of what’s happening in that neighborhood,” Petricca said. “It’s really an extension of the energy and vibrance of the Union Station area.”
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MADISON
2015
Q2
Madison Commercial Update AVG SALE PRICE INCREASED 19% SINCE 2013 2014 was a fantastic year for Central Denver apartment investors. Rents surged to record levels, operating expenses remained in check, a property values soared to all-time highs. The average sales price reached $127,275/unit for Central Denver, a remarkable 19% increase over 2013! Of the 66 transactions (10-100 units), only seven traded below $100,000/unit. While this is generally great news, owners should be prepared for a large increase when tax valuations come out from the Denver County Assessor.
CONSTRUCTION BOOM HAS YET TO EXCEED DEMAND Two years ago we spotlighted the return of apartment construction. After a decade of minimal building, we saw 11,000 units in the pipeline. Fast-forward to today, and we’ve seen all of those and more (nearly 13,000 units) delivered over the past two years. Remarkably, we’ve had a demand absorption of 13,200 units, so the vacancy rate has actually fallen since the beginning of 2013. At the beginning of 2015, James Real Estate Services reported there are over 20,000 units currently under construction in the metro area. 18,000 more are “proposed”. Most experts are forecasting 10,000 units completed in 2015, with a chance for more if construction delays experienced in 2014 (due to labor and material shortages) are solved this year. In 2014, the Denver metro absorbed over 8,000 units. We’ll need to exceed that amount for the next three years to avoid a noticeable increase in vacancy rates between now and 2017.
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MADISON
2015
Q2
Madison Philanthropy Join Madison & Company Properties for our
2nd Annual Birdies for Butterflies Golf Tournament benefiting the Bufferfly Fund and children with Epidermolysis Bullosa (EB) and other life-altering diseases. Tournament Information: Monday, September 14th, 2015 Blackstone County Club 11:30am Check In 1pm Shotgun Tournament Pricing: $150.00 Single $580.00 Foursome
Learn More at HopeforWilliam.com
For more information on sponsorship, getting involved or to become a player, please contact Larina McClain at 720.275.9663
Oh So Techy... Our Cherry Creek North office, located at 201 Milwaukee Street, is always on the forefront of new technology. ImageSurge is a ground-breaking technology allowing for interactive storefronts. While much of the retail world is almost entirely digital, storefronts remain as a tangible and accessible space. In a world so filled with technology, the interactive storefront allows real estate offices to interact in new ways with clients. The Cherry Creek office is excited to be part of this new technology and cater to clients needs in a new way. Drop by our Cherry Creek North office anytime to check our new storefront technology. Photo courtesy of ImageSurge
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