Welcome to the January edition of the 2015 Denver Real Estate Market Newsletter.
2014 REAL ESTATE MARKET SUMMARY
The January issue of my real estate newsletter is always my favorite; a chance to reflect on the market over the previous 12 months while getting a chance to polish my crystal ball and lay out my hunches for the upcoming new year.
So how was our real estate market in 2014? Truthfully, it was exceptional for sellers and often challenging for buyers. But before we get into that, let’s look at the stats:
2014 Real Estate Records
- Home prices at a record high! The average sales price for single family detached homes increased 8.3% to $360,335
- Inventory at record a low!
- The year ended with 5,352 active listings on the market, the lowest number since 1985 when data was first collected
- Only 6-week supply of unsold homes (six month supply is the benchmark for a balanced buyer/seller market)
More Impressive Stats
- Homes averaged 35 days on the market, 13 days less than 2013
- The number of homes sold was 41,363, down 6.6% from 2013. Sales would have been higher if there had been more homes to sell.
- Foreclosures and short sales accounted for only 4.8% of distressed sales in 2014. In 2011, distressed sales made up nearly one-third of all sales.
- The luxury home market showed continued strength:
- 801 luxury homes sold, an increase of 10.3% from 2013
- Sales volume increased 9.3% in 2014, to $1.2 billion
Other Real Estate Trends
- A majority of homeowners ended the year with positive equity in their home. Sellers who had been forced onto the sideline during the housing downturn were finally able to reenter the market with positive equity.
- The investor buying frenzy has all but disappeared due to fewer distressed sales and increase property values, giving the first time homebuyer the upper hand.
- Sales of homes, in the price range from $300,001 to $500,000, increased 15.9%
An Exceptional Year for Sellers
Last year was another Seller’s Market, an in many neighborhoods a strong Seller’s Market. Quality homes, updated and in good condition, that were priced correctly, would typically sell at or near asking price, often with multiple offers. There were occasional bidding wars, but not to the extent we saw in 2013.
A Tough Year for Buyers
Buyers faced a number of challenges: few homes to choose from, increased home prices and lots of competition from competing buyers. Home inspections remain the biggest hurdle. Buyers, who are paying top dollar for a home, expect sellers to complete home repairs. Sellers, who may have seen their home sell for full price in just a few days, were not inclined to complete any repairs. Often, buyers and sellers weren’t able to find common ground and the deal would be terminated by the buyers.
Regardless of home buyer challenges, I continue to congratulate each and every one of my buyers for taking advantage of this low interest rate environment. History has shown, during periods of rising interest rates, that home prices remain stable or sometimes even increase. Today’s buyers continue to benefit from increased affordability, a direct result of today’s low interest rates, that we may not see again in our lifetime. Read this article if you can’t decide if you should buy now or wait.
Need More Data?
Are you a data geek like I am? Would you like to see more 2014 real estate data for the city in which you reside? Use the links below:
LOOKING FORWARD TO 2015
All indicators point to a strong real estate market in the upcoming year. Real estate experts predict the following
- Home prices to rise 4%
- The number of homes for sale will increase as more homeowners have positive equity in their home, and can sell their home with out taking a loss
- Buyer demand will remain strong as mortgage rates hover at historically low levels
- Millennials and first-time home buyers will return to the market as overly stringent lender standards begin to loosen
- FHA mortgage insurance premiums were recently reduced, benefitting Millennial and first-time home buyers
- Denver’s housing will remain strong as a result of the strength of our economy. Unemployment rates are at pre-recession lows and employee wages and salaries are growing, both good indicators for a strong real estate market in the upcoming year.
FACEBOOK AND PAUL’S MOBILE REAL ESTATE APP
Please ‘Like’ my Facebook business page. Use this link to be redirected to ‘Paul Sobania – Real Estate’ and click on the ‘Like’ button (log in to Facebook.com if needed).
Search homes for sale on your smart phone or tablet using my home search app. Log in to the iTunes Store or Google Play and download the Keller Williams app. When prompted, type in the code ‘KWKB85L’. For simple downloading instructions use this link, www.PaulMobileApp.com.
DECEMBER 2014 REAL ESTATE MARKET TRENDS
DENVER REAL ESTATE MARKET TRENDS
REAL ESTATE NEWS
Inventory of homes for sale at all time record low Read More
Low inventory of homes expected for foreseeable future Read More
Only 5% of Colorado homes underwater, down from 20% at height of recession Read More
Denver poised for 4% price gains in 2015 Read More
Local governments forced to address condo defects issues Read More
Foreclosures in Colorado’s rearview mirror Read More
Record rents renew debate on buying vs. renting Read More
Metro Denver apartment rents up 12%; vacancies down Read More
Over 19,000 apartment units under construction in metro Denver Read More
Major league soccer’s 2015 all-star game coming to Colorado Read More
Colorado ranked 6th in the nation for solar power Read More
C-470 expansion, with toll lanes, moving ahead Read More
9 game-changing innovations that came from Denver Read More
Lone Tree approves light rail extension to serve Sky Ridge Hospital Read More
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home, please let me know. It would be my pleasure to work with you or your referral. My commitment to my clients is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Free Real Estate Tools
When searching for homes for sale anywhere in the Denver metro area use this link, Interactive Map-Based Home Search. This interactive, map-based home search tool makes looking for homes fun and easy. If you are interested in a specific neighborhood, whether it is your current neighborhood or the one you hope to move to someday, this site can send you e-mail notifications when new homes come onto the market. Happy home searching!
Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!