Supply vs. Demand

The following update from the DMAR Market Trends Committee is telling us very much what I had published yesterday.  I only follow 8 counties, but the 11 county input is not too much different.  Follow along and click through to the entire report.

Anthony and the DMAR committee are doing a great job lending a third party perspective on the Denver Market and additionally, sharing it with us is a great membership bonus from the Denver Metro Association of Realtors.

DMAR-Market-Trends_DECEMBER According to recent data provided by the Denver Metro Association of REALTORS® Market Trends Committee, the November market transactions encompassing the 11 Counties of the Denver Metro Area* are:

Residential (Single Family plus Condo):
Active Inventory: 5,420 -19.68% prior month
Sold Homes: 3,586 -24.96% prior month
Average Price: $330,544 2.07% prior month
Median Sold Price: $280,954 2.54% prior month
Average Days on Market: 39 8.33% prior month
Single Family:
Active Inventory: 4,419 -18.72% prior month
Sold Homes: 2,597 -23.51% prior month
Average Price: $364,770 1.19% prior month
Median Sold Price: $313,000 2.62% prior month
Average Days on Market: 41 7.89% prior month
Condo:
Active Inventory: 1,001 -23.65% prior month
Sold Homes: 989 -28.54% prior month
Average Price: $240,672 2.84% prior month
Median Sold Price: $192,500 4.05% prior month
Average Days on Market: 33 3.13% prior month
* Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.
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DMAR Market Trends | December 2014
© 2014 COPYRIGHT | All rights reserved to Denver Metro Association of REALTORS® The lower end of the market is still very tight, and selling quickly – especially in
the central Denver neighborhoods
 Consumer confidence decreased in November to 88.7 down from 93.8 in October
 Year-over-Year Average & Median sales prices are up 8.95% and 12.38% respectively
 Year-to-Date, a total of 49,583 homes closed at an average sold price of $324,566
 Year-to-Date Closed Sales Volume is $16.1 Billion (through November 30th)
 Mortgage interest rates remaining stable with 30-yr conventional rates under 4% and
a 15-yr conventional rates around 3.0%
 Some buyers still coping with 2014 market realities and having trouble understanding
why they can’t get a ‘rock-bottom deal’
 Public perception is that it’s mostly a seller’s market
 Days on Market (DOM) is slowly increasing with homes selling in 39 days
 Year-to-Date, sales volume for the Condo market is up sharply with a 43.56% increase
compared to 2013
 Year-to-Date, the Residential market saw a 42% drop in the # of listings, but still
registered the same # of closings while posting a 5.24% increase in sales volume
 Outdoor spaces with kitchens and fireplaces are highly desirable and becoming a
necessity in higher-end homes ($1m+)
 Listing agents need to help sellers price for today’s market without too much influence
on the frenzy of several months ago
 Buyers are willing to wait for unrealistically priced properties to come down before
considering an offer
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DMAR Market Trends | December 2014
© 2014 COPYRIGHT | All rights reserved to Denver Metro Association of REALTORS®

With less than a month remaining in 2014, the traditional or
seasonal cool-down has slowed the market somewhat –
although not as much as in prior years. The strength of our
market continues because eager homebuyers are still in
search of their “American Dream” home, and favorable
local economic indicators continue to improve and show
strength throughout the greater Denver metropolitan area.
Buyers are somewhat anxious to get settled in because they
realize mortgage interest rates are expected to increase in 2015 and are growing
weary watching from the sidelines. Meanwhile, prospective sellers looking at the
horizon still see an excellent opportunity to “cash-in” to buy up into their dream
homes or, in some cases, downsize as they become empty-nesters. They realize the
active listing inventory of homes for sale remains low and prices continue trickling
upwards. Overall, the market is strong as inquiries from buyers and sellers are
ringing merrily for DMAR agents as we enter the holiday season.
Year-to-date, the severe shortage of inventory showed active listings are down
almost 42%, the number of sold listings remained unchanged, but we’re still 5.24%
ahead of where we were a year ago with an overall sales volume at $16.1 Billion. The
year-over-year residential market has seen days-on-market (DOM) drop 22% and
the average sales price increase 8.95%.
– Anthony Rael, Chairman of the DMAR Market Trends Committee