Activity during December followed typical seasonal trends with inventory dropping and days on market (DOM) increasing. Average price for detached single family (DSF) homes dropped 2.6 percent from the previous month but ended the year 4.8 percent higher than a year ago while attached single family (ASF) homes bumped up from the previous month to a new record high, increasing 10.5 percent from the previous year.
With the market mirroring the trends from a year ago, among the projections for 2017:
- Sellers will continue to have the upper hand, as demand persists and inventory levels remain near historic lows;
- Prices will experience steady gains of 8 to 12 percent with the appreciation values likely determined by June;
- The percent of close-to-list price will remain around 100 percent;
- Distressed properties – government-owned, short sales and bank-owned – will remain low to non-existent; and
- If interest rates increase, the market could be impacted at price points where buyers are most loan-dependent (in the $200,000 to $600,000 range).
The beginning of the year always generates a number of news articles about our housing market and predictions for the New Year. Recent reports include:
- The Denver Post: “Metro Denver Home Prices More Overvalued Than Any Time Since the 1980s”
- Denverite: “Denver Among 10 Hottest Markets for 2017, Zillow says”
- Westword: “Why So Many of Colorado’s 90,000 New Residents Have Moved to Denver”
- TheDenverChannel: “In Denver’s Tight Housing Market, Does It Make More Sense to Rent or Buy?”
- 9News: “U.S. Housing Market Outlook for 2007”
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or email@example.com. I am never too busy for your referrals.
Based on information from REColorado®, Inc. provided by Land Title for the period of Nov. 1, 2016, through Nov. 30, 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.