In February, for the entire residential market (single family and condos), there was a 47.33 percent increase in active listings year over year generating a 5.6 percent increase in new listings compared to the month prior.
“Love was in the air in February’s real estate market. Buyers were loving homes so much they put 15.64 percent more homes under contract in the 11-county Denver metro area than they did in January,” said Jill Schafer, Chairwoman of the DMAR Market Trends Committee and metro Denver REALTOR®. “We’re definitely seeing the seasonal market pick up with the average number of homes sold in February up 4.77 percent month-over-month.”
Schafer assesses that the increase in contracts can be partly attributed to the increase in choices. “Buyers took advantage of the additional 5.60 percent of new listings, which was 47.33 percent more active listings to choose from than they had at this point a year ago,” added Schafer.
According to Schafer, more single-family homes went under contract in February than came on the market, meaning the inventory surplus is eroding, which is not the case with attached homes.
“The number of active condo listings has risen steadily over the past four years,” Schafer noted. “A 79.14 percent jump in active listings at the end of the month increases the spread between inventory and demand, which is a notable increase.” Schafer concludes that overall, the Denver metro area is still in a strong seller’s market with only 1.92 months of single-family inventory available.
“Only detached homes priced over $1 million were in a buyer’s market with 6.58 months of inventory,” Schaffer notes. “At the current rate of sales, there’s 2.07 months of attached home inventory overall. But, buyers are in the power position with 6.24 months of inventory for condos priced between $750,000 and $999,999, and 7.31 months of inventory over $1 million.”
*According to industry standards, under five months of inventory is a seller’s market and over six months of inventory is considered a buyer’s market.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999) and “Premier Market Report” (properties sold between $500,000 and $749,999). In February, 119 homes sold and closed for $1 million or greater – up 22.68 percent from the previous month and down 6.3 percent year over year. The closed dollar volume in February in the luxury segment was $ 178,766,560 up 13.99 percent from the previous month, and down 4.94 percent year over year.
The highest priced single family home sold in July was $8,200,000 representing seven bedrooms, 12 bathrooms and 12,878 above ground square feet in Cherry Hills Village. The highest priced condo sold was $3,950,000 representing four bedrooms, five bathrooms and 4,753 above ground square feet in Denver. All the listing and selling agents for the two transactions are DMAR members.
“Love was also abundant in the Luxury Market in February as single-family and condo sales were up 22.68 percent,” stated Brigette Modglin, DMAR Market Trends Committee member and metro Denver REALTOR®. “Signature Market buyers should consider jumping into the Luxury Market, since there is 6.58 months of inventory.”
Notably, Modglin adds that even with the current increase of inventory in the Luxury Market, it’s still nowhere near where it was in 2010 when there was 27.2 months of inventory.