DMAR Market Trends March 2015

Homebuyer Demand Remains Strong; Millennials Entering Market at Rapid Pace

Denver inventory remains low, which continues to drive up home prices. Year over year, home prices have increased 19 percent and 18 percent in the average and median sales price respectively. According to Anthony Rael, Chair of the DMAR Market Trends Committee:
"Scarcity of inventory and increasing home prices, coupled with the possibility mortgage interest rates will rise when the Federal Reserve meets in June, has millennials entering the real estate market at a rapid pace"

The number of active listings inched its way to an unprecedented low. However, February did usher in a healthy dose of new residential listings that represented a 13 percent increase from the month prior.

According to the report, the inventory of available homes (single family and condos) for sale was 4,079 at February month end. Notably, 4,240 homes came onto the market, 4,077 homes were placed under contract, and 2,667 homes closed at a median sold price of $295,000 and an average sold price of $348,127; resulting in a closed dollar volume of $928.45 million.

• Homes that went off the market for the holidays are back on, but are going under contract right away.
• Top three counties for SOLD properties in February: Denver (726), Arapahoe (554) & Jefferson (462)
• Top three counties for SOLD properties year-to-date: Denver (1331), Arapahoe (1165) & Jefferson (939)
• New home builders are releasing lots and building as fast as they can, but the availability of skilled craftsmen and materials is pushing "dirt-starts" 7-10 months out.