Q3 Madison Market Report by Madison & Company Properties

MADISON

Report Q3 2017 Real Estate Market Update

Q3 quarter 3 real estate market recap 2017

These stats are based on the following 11 Counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park County As we wrap up another quarter of the year, we are preparing for a strong finish to 2017 and likely another record breaking year ahead. As a company, much of our focus now is on business planning, creating more value for clients and anticipating what kind of market will greet us as we turn the calendar over. Most indications tell us that 2018 will be very similar to the 2017 market across the Front Range and challenges in affordability and inventory will remain. As the year progresses, we may begin to see a leveling off in pricing and supply of homes but that remains to be seen. Either way, homeowners along the Front Range have much to be thankful for as Denver remains one of the most desired places to live and now ranks as the most expensive market that is not on a coast. As the seasonal slowdown begins, we look to Daylight Savings as a day when the market really shifts. Buyers are less enthused to home shop in the dark after work and sellers are not as excited to show their home when buyers are walking in and out with snow

madison quarter 3 report

and ice on their feet. While it seems very basic, it does have a tremendous effect on the market. This means new opportunity for buyers and investors to buy with less competition and more motivated sellers in play. If you have been on the fence to buy the next 3-4 months may be the best opportunity we have had in some time. The numbers tell the story of what happened in Q3 and where it is heading next. In September, active listings in the residential market (single-family homes and condos) was at 7,586 total units in, while the number of sold listings decreased by 21.58% compared to the previous month. The decrease in sold listings is greater than the 10-year seasonal average decrease of 10.1%. Notably, even with the number of homes sold dropping, the market is still ahead of last year as year-to-date closings are up 3.22% over 2016.

in September, we saw over 1,200 price reductions on listings in the Denver Metro area, where just a couple months before we could measure that stat in the dozens. In September, the average home price decreased by 0.52% to $429,597 and the median home price decreased by 1.06% to $375,000 compared to the month prior. Year over year, the average and median home prices in the residential market are still up 8.84 and 8.07% respectively. There is no doubt that a gradual slowdown in home values will bring us a more balanced market, fair to both buyers and sellers, something Madison & Company welcomes and is prepared for. Now to see what actually happens. - Justin Knoll, President Madison & Company Properties

The number of showings on listings are slowing down and home sellers are reducing home prices in order to get more traction. During a week

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Economic Indicators popular price point Right under $400k seems to be the sweet spot with days on market decreasing slightly.

h2.3% unemployment A record low. Down from 2016 YTD average of 3.3%

26%

denver ranks 6th on list of markets to build most homes in 2017

companies hiring in denver area YTD average up 1 percentage point compared with 2016

52%

With 25,098 annualized permits, Denver is up 52% from the norm in homes built this year.

consumer confidence index

YTD average up 26.4% through September 2017

* Source: MetroDenver Economic Development Corporation

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residential - detached, single family

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11 county denver metro real estate stats

July • August • September Residential Detached, Single Family JULY AUG SEP ACTIVE LISTINGS

YTD 2017 5,693 YTD 2016 6,021 YTD 2015 6,080

AVERAGE Days on Market

MEDIAN Sold Price

$420,000 $410,000 $409,000

TOTAL Active Homes

5,703

5,634

5,693

TOTAL Sold Homes

3,538

3,604

3,165

Average Sales Price

$479,571 Year To Date

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residential - attached, condominium

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11 county denver metro real estate stats

July • August • September Residential Attached, Condominium JULY AUG SEP ACTIVE LISTINGS

YTD 2017 1,893

AVERAGE Days on Market

YTD 2016 1,578

MEDIAN Sold Price

$275,000 $275,000 $268,000

YTD 2015 1,436

TOTAL Active Homes

1,649

1,726

1,893

TOTAL Sold Homes

1,341

1,520

1,262

Average Sales Price

$315,099 Year To Date

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madison statistics Detached Single Family | 11 County Overview Active

7,000

New Listings

Under Contract

Sold

6,000 5,000 4,000 3,000 2,000 1,000

Sept, ‘16

Oct, ‘16

Nov, ‘16

Dec, ‘16

Jan, ‘17

Feb, ‘17

Mar, ‘17

Apr, ‘17

May, ‘17

Jun, ‘17

Jul, ‘17

Attached Single Family (Condo) | 11 County Overview Active

New Listings

Aug, ‘17

Sep, ‘17

Under Contract

Sold

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 Sept, ‘16

Oct, ‘16

Nov, ‘16

Dec, ‘16

Jan, ‘17

Feb, ‘17

Mar, ‘17

Apr, ‘17

May, ‘17

Jun, ‘17

Jul, ‘17

Aug, ‘17

Sep, 17

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madison statistics Days on the Market | Single Family vs Condo 55 Single Family

Condo

45 40 35 30 25 20 15 10 Sept, ‘16 Oct, ‘16

Nov, ‘16

Dec, ‘16

Jan, ‘17

Feb, ‘17

Mar, ‘17

Apr, ‘17

May, ‘17

Jun, ‘17

Jul, ‘17

Aug, ‘17

Sep, 17

Residential Sold Price | Average Sold vs. Median Sold Price Average Sold

Median Sold

$550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 Sept, ‘16

Oct, ‘16

Nov, ‘16

Dec, ‘16

Jan, ‘17

Feb, ‘17

Mar, ‘17

Apr, ‘17

May, ‘17

Jun, ‘17

Jul, ‘17

Aug, ‘17

Sep, ‘17

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madison statistics Month End Active Listings vs Month End Sold Listings

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Winter is Coming...

Tips for getting your home ready for cooler temperatures.

Install Storm Doors & Windows

Insulate Pipes

Change Furnace Filters

Storm doors and windows exponentially increase your energy efficiency - up to 45% by sealing out drafts and reducing air flow. They allow light to enter the home more efficiently (perfect for optimal appreciation of Colorado’s sun).

Frozen pipes are no joke, and dealing with burst pipes is even less enjoyable. Stop this unfortunate experience before it happens by insulating your pipes for the winter! Also, don’t forget to drain and disconnect your hoses!

We’ve all been hit by that terrible smell of burning dust as the heat is turned on for the first time each winter. What you may not realize is that furnace filters should actually be changed once every month. Not only does this keep the air in your home cleaner, making your residence safer, it also keeps costs lower and is more efficient.

Seal Air Ducts

Fix Drafty Rooms

Chimney Sweep

10% to 30% of heated (and cooled) air escapes through ducts! Ensuring your ducts are properly sealed helps your home retain proper temperature, maintains cleaner air, and can reduce the mold and dust floating through your home. A win-win all around!

Air seeping in beneath doors and through windows can up your heat bill and bring undesirable chilly air into your home. Stop up drafty doors and windows with rolled-up towels or draft snakes. Caulking and weatherstripping windows is another excellent way to seal in the heat this winter.

Before you burn any logs call a chimney sweeper to perform a cleaning. Making sure the fireplace, chimney and vents are all clear of debris will eliminate build-up and blockage. This should be done every year to ensure safety while you snuggle up next to the fire.

Generational

HOME BUYER TRENDS

millennials are the ying largest bu generation

In a time of greater student debt, and post-2008 market crisis, homeownership and buying patterns have changed. But for as much flack as the, fondly named “Hipster Generation” (Millennials) receive, their unique home ownership approaches can actually help add to the growth of up-and-coming cities and neighborhoods. On the other hand, the increase of over 18-year-old adult children moving back home with parents has also shifted the way home buying looks throughout the generations. Of course, in our diverse and changing world, there is one way that housing trends looks these days. Instead we see the marketing and buying habits changing continually, but the trends across generations are both fascinating and insightful.

% 0 7 e e y u of b rs ar

In the past, permanence and settling down has been a key factor in the whento-buy-a-home decision. Many plan to settle down and raise a family in their g in iv home, living in it for upwards of 30 years. When thinking of purchasing a home, married or l ner t r a p a h the “seven-year” rule has been an important factor. These days, younger wit generations are often living in homes for less than six years, and many aren’t moving into a new home with the intention of raising a family. Over 50% of millennials purchasing a home are moving into the city, which is the largest generation to have so many people living downtown in urban spaces and earning the “hipster” label. The good news is, despite rising debt and Highest the independent inclination of the younger generation, many millennials m edian ho are purchasing homes, in fact they make up the largest demographic usehold purchasing homes today. Buying rates are lower in other generations, but overall, each generation is trending towards purchasing new homes with each life transition. Generation X and Young Baby Boomers are making purchasing decisions around their kids and partners, while Older Baby Boomers and the Silent Generation are driven by retirement plans, downsizing, and moving closer to friends and family.

66%

of millennials are first-time home buyers

Ultimately, Millennials/Hipsters are the generation surprising everyone with their unique buying patterns and the large percentage purchasing homes. Their home purchasing patterns will continue to shape the housing market for years to come.

income i

$106,600

14%

of all re purchas cent home es w first-tim ere made by e home b uyers

The Stats percentage of recent homebuyers

Millennials/ Gen Y

{ Ages 36 & Younger }

Generation X

{ Ages 37 - 51 }

children

median income

reason for buying

• 34% of recent home buyers • 66% are first-time home buyers • The largest generation demographic purchasing homes • Median home buyer is 31 years old

• 66% of millennials purchasing homes are married couples • 13% are unmarried couples • 13% are single women • 6% are single men

• 49% of millennial buyers have children in the home under the age of 18 • 22% have one child • Only 7% have 3 or more kids under 18

The median income is $82,000.

Millennials are making home buying decisions based on both personal interest and the interest of children and partners.

• 28% of recent home buyers • 26% are first-time home buyers • Second-highest group of first-time home buyers • Median home buyer is 43 years old

• Most likely to be married when purchasing a new home • 68% are married • 7% are unmarried couples • 15% are single women • 8% are single men

• Most likely to have children under 18 living at home • 38% have no kids • 19% have one kid • 30% have 2 kids • 13% have 3 or more kids under 18

The median income is $106,600. This is the highest median income, as Gen X is statistically in their peak earning years.

Generation X is most driven by partners and children in their search for a new home. As the generation most likely to be married with kids at home, school and area have a high influence factor.

• 16% of recent home buyers • Median home buyer is 57 years old

• 65% are married • 5% are unmarried couples • 20% are single women • 8% are single men • This demographic has the secondhighest number of single women

• Younger Baby Boomers are more likely to have children under 18 still living at home • 82% have no kids • 11% have one kid • 5% have 2 kids • 2% have 3 or more kids under 18

The median income is $93,800. This is the second-highest median income.

Younger Baby Boomers are more likely to buy multi-generational homes, driven by numerous factors including kids at home, adult children moving home, caring for aging parents, downsizing, and living closer to friends and family.

• 14% of recent home buyers • Median home buyer is 66 years old

• 66% are married • 3% are unmarried couples • 21% are single women • 8% are single men • This demographic has the highest number of single women

• Older Baby Boomers are less likely to have children under 18 still living at home • 93% have no kids • 5% have one kid • 2% have 2 kids • 1% have 3 or more kids under 18

The median income is $76,800.

Older Baby Boomers are more likely to buy a new home because of retirement, downsizing, and a desire to live closer to family and friends. They are the generation least likely to make compromises on their new home.

• Comprises the smallest generation of new home buyers • 8% of new home buyers • Median home buyer age is 75

• 65% are married • 3% are unmarried couples • 20% are single women • 10% are single men

• 97% have no kids • 1% have one kid • 2% have 2 kids • Less than 1% have 3 or more kids under 18 years old

The median income is $66,600. This generation has the lowest median income.

Younger Baby Boomers { Ages 52 - 61 }

Older Baby Boomers { Ages 62 - 70 }

Silent Generation { Ages 71- 91 }

relationship status

madison quarter 3 report

Most of the Silent Generation is retired. They are least likely to purchase a detached single-family home and are motivated by being closer to family and friends and downsizing. 24% buy senior-related housing.

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Madison & Company Properties | www.madisonprops.com | 303.771.3850 ÂŠ2017 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: NAR, RIS Media, DMAR