Active listings in the residential market (single family and condos) dropped 6.47 percent to 3,989 last month, which represented an all-time low for any January on record – and only the second-time active listings have dropped below 4,000. The number of sold listings in January decreased by 33.21 percent compared to the previous month. According to Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent, these decreases are normal for this time of year.
“Low housing inventory has been a key driver for over two years now and I don’t see that changing any time soon,” said Danyliw. “Historically, inventory follows a seasonal pattern. We see the bottom in January to February, then peaking in late August to September. The second driver is mortgage interest rates. All predictions indicate a steady rise in interest rates throughout 2017. This could compel buyers that are sitting on the sideline to get into the big game. This – combined with mild temperatures – could cause our spring selling season to start early. I’ve seen forecasted estimates on housing appreciation ranging from 4.5 percent to 10 percent. I think 2017 will hit somewhere in the middle of those numbers.”
In the single-family home market, the average sold price rose 3.86 percent to $448,374, while the median price remained relatively unchanged at $380,000. Year-over-year, housing prices have increased 9.25 and 9.99 percent in the average and median sale prices respectively.
The condo market showed 34.05 percent fewer sales than the previous month, while the average and median sales prices dropped to $288,962 and $242,500 respectively. Year-over-year condo sales prices showed impressive gains, an increase in the average price by 6.83 percent and median price by 12.79 percent.
“Sellers are thrilled by the price appreciation and buyers are frustrated by the low inventory,” comments Danyliw. “If you’re a real estate agent working with a homebuyer under the $400,000 price point, you have a front row seat to a real estate feeding frenzy.”