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Denver Area Real Estate Market Stats - April 2016

Great Living Colorado: April 2016 Denver Area Real Estate Market Update

Great Living Colorado recaps the market for the month of March 2016.

Welcome to this month’s Market Update - April 2016

Spring has sprung and the Denver area real estate market is bursting with activity!

Active Listings, New Listings, Under Contract and Sold Homes all showed double digit month-over-month gains in March as the Average and Median Sales prices increased ever-so-slightly.

For the entire Residential market, which includes Attached and Detached properties, 5,706 New Listings came on the market (+33.63%), 4,720 homes were placed Under Contract (+13.71%) and 4,063 homes Sold and Closed (+27.69%). We closed out the month of March with 4,482 Active Listings – representing a 13.10% increase in inventory over the previous month and 9% over the previous year. Average and Median Sold Prices edged up again from the previous month with gains of 4.92% to $393,684 and 4.86% to $345,000 respectively.

As we look at our month-over-month Detached Single Family Home market, New Listings skyrocketed to 4,147 - which represents an impressive 35.88% increase over the previous month. Average and Median Sold Prices bumped up from the previous month with increases of 5.08% to $435,796 and 5.33% to $379,173 respectively.

Denver metro area’s Condo market (aka Attached Single Family) showed the supply of New Listings skyrocketed 28% to 1,559 units over the previous month while the Average and Median Sold Prices also showed slight increases of 1.41% to $287,249 and 3.32% to $234,900. Wrapping up with the year-to-date Residential (RES) analysis, Active Listings are up 9%, New Listings are even, Sold Listings have risen ever-so-slightly (1.91%), Average Sales Prices show double-digit increases, and Total Sales Volume is already up 11.93% to $3.87 billion!

Market Insights:

In February, 61% of homes sold nationally were under $250k compared to only 28% in the 11-county Denver metro area.

Example of bidding way above asking price going to extremes: a property in West Wash Park offered for sale at $497k, closed at $615k.

Desire to compete and pressure of multiple offers is enticing homebuyers to make rash decisions to go under contract, and then later terminate after inspection.

Homes in good condition with multiple offers are still selling for tens of thousands of dollars more than the list price.

Buyers offering to bring additional cash to the table to cover gaps between appraisal and contract price is becoming common practice.

Buyers need to gather as much cash as possible and come in with their best offer right from the start & not hold back. Managing your client’s best interests is crucial in this process.

An oversupply of rental units may drive up vacancy rates and drive down rent prices.

Realtor.com recently published America’s 20 Hottest Real Estate Markets in March 2016, and Denver was rated #3, falling behind San Francisco, and Vallejo, CA. Colorado Springs was #11 and Boulder #18.

For more information about these market stats or details about a specific area, please call 720-833-8542.

Source: Denver Metro Association of REALTORS

Great Living in Colorado

Keller Williams Realty  DTC, 6300 S. Syracuse Way Suite 150, Centennial, CO 80111

Jim Holmes : 303-475-7249
Patrick Panzarino : 303-956-2949