Strong Denver-Area Economic and Labor Markets Contribute to Favorable Outlook in 2015

from Denver Metro Association of Realtors Monthly Newsletter...

Strong Denver-Area Economic and Labor Markets Contribute to Favorable Outlook in 2015

The month of December and the year of 2014 set records in several categories of residential real estate, and a look at the numbers proves why. In 2014, there was $17.5 billion in closed dollar volume and $4.4 billion in the secondary market. Combined, this resulted in a $22 billion impact on the Denver area economy!
Year over year average sales are up 11.22% and median sales prices are up 14.47%. Year-to-date, a total of 53,719 homes closed at an average sold price of $325,634. Condos alone were a powerful force on the 2014 Denver market, with a tremendous 56% increase in sales volume year over year. Said Anthony Rael, Chair of the Denver Metro Association of REALTORS® Market Trends Committee:
"One thing is certain, 2014 proved that we have the capacity to do more with less and our REALTOR® members will need to figure out a way to replicate the successes of this year as we march into 2015."

The strength of the Denver market continues into 2015. Current economic and labor markets are favorable, with consumer confidence rising slightly to 92.6%. This increase in confidence and improving economic conditions are forecast to benefit the Denver housing market in the coming year.
Active listings for single family and condos decreased nearly 20% from the previous month to an annual low of 4,355 units in December. At December month end, there was less than a 500-unit difference between the number of active listings and the number sold or closed (3,869). Rael comments:
"Low inventory levels may be the new norm - at least for the next 12 to 18 months. Sellers will continue to have the upper-hand in negotiations with buyers, but pricing and condition will need to be justified in order to ensure top-dollar. Consumer confidence is high and mortgage interest rates are low. Buyer demand is strong, but homebuyers need to be patient and prepare to compete until more inventory comes online."
~Anthony Rael, Chair of the DMAR Market Trends Committee.