Sales continue to drive pricing to record highs in Colorado
The much-anticipated influx of summer listings in Colorado’s housing market has had a limited impact for buyers as strong sales and continued low inventory have driven median and average pricing to record levels in many counties across the Denver metro area, as well as markets across the state. Those high-water marks for pricing are typical for the spring and summer months and require a more in-depth look at key measurables and trends in local markets, according to the latest monthly market data from the Colorado Association of REALTORS®.
Despite a 27 percent increase in the number of new listings between May and June, the volume of sold listings and those that are pending or under contract negated any improvement in the total number of active listings in both the Denver-metro region and state as a whole.
Fueled by continued strong demand, the median price for single-family homes reached a new record at $445,000 in the seven-county Denver metro region, up 1.2 percent from its previous high in July 2018. The average price for a Denver-metro home also topped the record chart in April at $529,745, up 2.4 percent from a year ago.
The same factors drove pricing higher in the condo/townhome market in April as those Denver-metro area properties jumped to a median price of $304,400, just shy of its all-time high $305,000 mark set three times during the spring and summer 2018.
Statewide, the median price of a single-family home reached $400,000 in April, just barely higher than its previous high mark also set in July 2018. The statewide condo/townhome market matched the Denver-metro area median pricing and its previous high-water mark of $305,000. The average price for a condo/townhome across Colorado rose nearly 4 percent from a year prior to $392,885, but remains well below its all-time high of more than $414,000 set in December 2018.
Taking a closer look at some of the state’s local market conditions, Colorado Association of REALTORS®market trends spokespersons provided the following assessments:
“April 2019 looked very similar to April 2018 across Aurora and Centennial as the number of active listings for both residential single-family and condo/townhomes were very comparable. With 484 active listings in Aurora, the $389,000 median price of a home was up about 5 percent over this time last year. A parallel 5 percent increase in condo/townhome market put the median price at $250,000. The average days on market stretched to 23 up from 19 days a year ago.
“Centennial is looking slightly different from its 2018 scenario. There are currently 144 listings with a median price of $470,000 for single-family homes. Condo/townhome median pricing is down slightly from 2018 with a median price of $318,000. The market is strong with both Aurora and Centennial providing buying opportunities that don’t include the over-bidding that was so prevalent in the past several spring seasons. The market is providing both buyers and sellers with a window of opportunity to get into that ideal home or sell and relocate,” said Aurora-area REALTOR® Sunny Banka.
“Steady and even is how we can describe the Boulder County real estate market this spring. While we have typically seen solid appreciation and quick sales at this time of the year, we are experiencing more of a less-than-exciting market right now. Prices are holding even with what they were at this time last year. Days on the market are still about the same at 52 days and sales price to list price holds steady at 98 percent. Sellers who need to sell are finding they need to price right and stage their properties. Buyers are showing signs of hesitancy, worried about a potential decline in the market in the future. All in all, the market is strong, but the brisk appreciation of the past is not seemingly coming back for this spring.
“Broomfield County is movin’ and shakin’ with 30 percent more listings on the market now since the beginning of the year. But they are being gobbled up at a quick pace with a 26 percent increase in new sales since January. Prices are holding just about even, up by 1/9 of a percent from last year. Homes are selling in less than a month, so the market activity remains brisk. Townhomes and condos are showing signs again of lack of inventory, with listings down and a healthy appreciation rate of about 6 percent over last year. With only 21 days on the market, these affordable options seem to be flying off the shelves,” said Boulder-area REALTOR® Kelly Moye.
“Denver met expectations this past month as April’s numbers revealed both strong buyer and seller behavior. With 6 percent more listings than April 2018 and an overall supply increase of 50 percent in Denver County, such a robust change continues to encourage all parties to pivot their strategies towards a harmonious middle ground. With the average days on market increasing from 17 days last spring to 24 now, the 41 percent change does more than the increasing supply and slowing price rises, it shows that, though remaining strong and measurably vibrant, our shift is staying consistent through the predictably heavy sale months,” said Denver-area REALTOR® Matthew Leprino.