Buyer activity typically increases after the Broncos’ last game of the season, and this year the number of units going under contract jumped 35 percent in the week following the team’s Super Bowl win. In February, home prices in the Denver Metro housing market increased from both the prior month and year-ago period, and the market compressed as buyers starting searching while sellers continued to wait:
- The number of units placed under contract exceeded the number of new listings
- Average sold price was $417,278 for detached single family (DSF) and $281,278 for attached single family (ASF) homes, up 9 and 13 percent, respectively, compared to February 2015
- Distressed properties represented 2 percent (for DSF) and 0 percent (for ASF) of the market compared to the average of 18 and 21 percent, respectively, resulting in bidding wars that are pushing the values back to fair market prices
Are we in a bubble?
- Unlike our last real estate boom, this market is built on wealth rather than credit;
- There is a significant undersupply of homes below $1 million – with even greater market compression for homes under $400,000 – and minimal development planned for 2016; and
- With strong migration to the Denver Metro area expected to continue, the market is expected to remain competitive.
Tips for buyers and sellers:
- Buyers – be prepared to compete aggressively
- Sellers – price it right – homes on the market for two weekends or more should consider a price reduction
If you need any advice or assistance with your real estate needs, contact me today.
Based on information from REColorado®, Inc. for the period of February 1, 2016, through February 29, 2016, for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson Counties. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.