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Market TrendsReal Estate
Denver Metro Real Estate Market Trends Report – January 2019

Real Estate Market Trends Report | JAN. ’19

The January report, according to recent data provided by the Denver Metro Association of Realtors® Market Trend Committee, showcases the December market transactions encompassing the 11 counties of the Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park).

Here are the highlights:

Residential (Single Family plus Condo)

Prior Month Year-Over-Year
Active Inventory 5,577 -25.94% 44.71%
Sold Homes 3,396 -17.79% -22.96
Sold Price – Average $465,163 1.11% 4.70%
Sold Price – Median $400,000 1.27% 3.90%
Days on Market Average 39 21.88% 8.33%

Single Family (aka Detached Single Family)

Prior Month Year-Over-Year
Active Inventory 3,892 -27.56% 39.40%
Sold Homes 2,474 -15.24% -21.06
Sold Price – Average $508,016 1.01% 4.50%
Sold Price – Median $430,000 0.47% 3.30%
Days on Market Average 41 24.24% 10.81%

Condo (aka Attached Single Family)

Prior Month Year-Over-Year
Active Inventory 1,685 -21.88% 58.66%
Sold Homes 922 -23.93% -27.63%
Sold Price – Average $350,176 -1.88% 2.57%
Sold Price – Median $298,225 -0.09% 4.64%
Days on Market Average 35 20.69% 9.38%

Market Insights

  • Colorado is ranked as one of the top five states for cybercrime. As a way to protect consumer data privacy. Colorado passed House Bill 18-1128 that went into effect September 1, 2018. Important questions for brokers and their associates to be asking themselves: how do you handle client data? Do you have a data security policy? Are you properly insured?
  • Homes are taking longer to sell, but sellers are willing to wait a little longer to get close to their listing price.
  • “Move up” buyers are on the rise. As most Denver metro homeowners are equity rich, they are cashing in their equity to pay off credit card debt, student loans and/or car loans and are still able to make the next move to purchase a new home
  • Unfortunately for buyers, it’s only going to get costlier to buy in 2019, especially for entry-level homes. To be successful, buyers should think through how they’ll adapt to higher rates and price
  • The 25 most expensive ZIP codes in Colorado demand minimum salaries ranging from roughly $120,000 to $200,000 in order to afford the median home price, according to a Business Journals analysis of more than 15,000 ZIP codes across the nation
  • Three of the most expensive homes for sale are located in the Washington Park/South Denver Country Club area, where the median price for a home in $724,900 the highest in Denver right now
  • Optimism remains high for the 2019 real estate market in Denver. While interest rates are increasing, loan applications are on the rise. Buyers and sellers are eagerly making plans to enter the marketplace this year
  • Although interest rates are increasing, buyers aren’t willing to compromise on their list of wants vs. needs to rush into a home due to interest rates
  • The Urban Land Conservancy (ULC) has used its new loan fund to purchase more property, with plans to house nonprofit and local government offices and develop affordable housing. ULC also plans to set aside one acre of the 4.5 acre site and work with a developer to construct up to 70 units of permanently affordable rental housing or a for-sale affordable housing development
  • It’s official: more buyers now qualify! As of January 1, 2019 FHA. Fannie and Freddie Mac raised the national conforming loan limit from $453,100 to $484,350. Denver Metro’s new loan limit is $561,200. Looking at buying a multiplex? Loan limits are even higher at $718,450 for a two-unit, $868.400 for a three-unit and $1,079,250 for a four-unit.
  • Rates have continued their two-month slide and are currently back to what they were in early summer. Current national average for a 30-year fixed mortgage with a 0.5 perfect origination is 4.55 percent as per Freddie Mac. This is positively impacting projections for the 2019/2020 rate.
  • Low supply of inventory will still drive the Denver metro market in 2019 and push prices up as we remain a destination due to our great quality of life. Get ready for things to start heating up again in February, as they have over the past eight years.
  • The number of For Sale By Owner (FSBO) transactions fell to a record-low of seven percent of all home sales in 2018, down from eight percent last year according to the National Association of REALTORS® 2018 Profile of Home Buyers and Sellers. FSBOs have decreased dramatically since 1981, when they accounted for 15 percent of all home sales
  • Home sellers indicate a better understanding of properly pricing their home to reflect current market conditions than any time in recent memory. Though not all are keen to the changing market, most are warm to the notion that our aspirational pricing market looks to be in the rearview mirror.

Quick Stats

  • Average active listings for December is 13,403 (1985-2017)
  • Record high December was 2007 with 24.603 listings, and 2017 represented the record low with 3,854 listings.
  • The 20-year average change in active listings from November to December is a 13.05 percent decrease. 2018 represents a decrease of 25.94 percent. This is a record decrease, but 2017, 2016 and 2015 were not too far behind

2019 National Forecast

  • Home price growth will continue to slow, with a forecasted increase of 2.2 percent.
  • Inventory increases will remain moderate with less than a seven percent increase
  • The 20-year average change in active listings from November to December is a 13.05 percent decrease. 2018 represents a decrease of 25.94 percent. This is a record decrease, but 2017, 2016 and 2015 were not too far behind
  • High-priced markets will buck the trend, with double-digit inventory gains
  • Millennials will account for 45 percent of mortgages in 2019 vs. 17 percent for Boomers.
  • New tax plan will be good for renters and mixed for homeowners

Interested in knowing what your home is worth?

No obligation. Just good information.

natalia-blackie-arvada-real-estate-homes-for-sale-remax

Natalia Blackie
Broker Associate, Realtor, PSA, ACP, SRES, SFR
RE/MAX Alliance
9737 Wadsworth Parkway
Westminster, CO 80021
nblackie@remax,net
720.507.4784 Direct

Source: DMAR

Natalia Blackie
Natalia Blackie is a REALTOR® and Broker Associate with RE/MAX Alliance specializing in residential homes in Colorado all along the Front Range with over 20+ years in marketing experience. Natalia help clients find the home that best fits their unique needs, then provides high-quality results that meet their objectives. She has worn many hats in her career — designer, marketer, content strategist, and business owner. As a result, she has a unique ability to manage multi-disciplinary projects and to navigate complex challenges. Natalia is also a member of the following associations: Denver Metro Association of Realtors, Colorado Association of Realtors, National Association of Realtors, Builders Realty Council, Arvada Chamber of Commerce, Active Volunteer and Board member of the Citizen’s Police Academy of Arvada Alumni. If you have a real estate need I can help with, please get in touch. Real Estate Designations include: Accredited Commercial Practitioner (ACP®), Seniors Real Estate Specialist (SRES®), Pricing Strategy Advisor (PSA®), Short Sales & Foreclosure Resource Certified (SFR®), and REALTOR®