+ Denver market ranks second in nation for rising housing prices.
+ Home values in the Denver metro area increased 45.5 percent over the past 10 years.
+ Oil giant, BP, is moving its U.S. headquarters from Houston to Denver to be closer to its Rocky Mountain operations resulting in 200 workers calling Denver home.
“2016 will go down as another robust market defined by record-low inventories and record-high prices,” states Steve Danyliw, Chairman of the Denver Metro Association of Realtors ( DMAR) Market Trends Committee and Denver real estate agent.
“First, housing inventory has been an issue as evidenced by historically low numbers for the past three years,” he said. In February, DMAR recorded 3,963 active listings at month end, representing the lowest number of any month since housing data started being tracked in 1985. December 2016 finished with 4,265 active listings, which was 68.9 percent less than the historical December average of 13,702, and beat the previous December low in 2014 at 4,355.
Also, even though the year finished with 55,634 sold homes, that figure was not enough to surpass last year’s record-high of 56,062. Notably, however, the year-to-date sales volume in 2016 finished at $22,230,011,184 – up 9.22 percent year over year. For further comparison, looking back to 1990, the total sales volume then was $2,411,618,946.
Additionally, the year-to-date average sold price of a home in 2016 was a record high at $399,576 – up 10.06 percent year over year.
Winter Sellers saw a cool down in pricing, which is why I encourage my clients who are buyers to shop the “off season” as there is less competition and more reasonable prices!
The other big story is the precipitous increase in mortgage interest rates. Prior to the November 2016 election, 30 year fixed rate mortgages were at 3.625%. Quickly after the election rates climbed to 4.5%. We have seen a little softening since, as there was no fundamental reason why rates rose so quickly. However, until the new adminstration takes office and the market sees their direction on policy, it may be an unpredictable market.