The Colorado real estate market performs quite differently than the national average, and in an area the size of Denver, Boulder and the varying-sized resort communities throughout Colorado, market trends can vary dramatically. When contemplating as large a financial commitment as the purchase or sale of a home, neighborhood micro-market data can make a significant impact on financial decisions. On January 19, 2017, LIV Sotheby’s International Realty released a year-end micro market report (MMR), indicating that the Colorado real estate market demonstrated continued growth at the end point of 2016. The MMR compares 2016 year-end statistics, to those of 2015, for single family homes and condos.
“The front range of Colorado has gained notoriety internationally as an excellent place to investment, fueling the demand for Colorado real estate even more,” said LIV Sotheby’s International Realty president, Scott Webber. “Consequently, the market favors sellers with homes having a very short average time on the market, high sales price to list price ratio, and oftentimes, competitive bidding situations. These factors indicate that the Colorado real estate market will continue at a strong and competitive pace as we continue into the new year.”
LIV Sotheby’s International Realty compiles micro market reports for the residential areas the brokerage services, which includes 13 office locations in Denver metro, including Castle Pines, Cherry Creek, Denver Tech Center, Downtown Denver, Evergreen and Boulder and the resort communities of Breckenridge, Beaver Creek, and Vail.
Denver continues to be one of the best performing markets in the country and has logged double-digit appreciation in each of the last five years, according the Federal Housing Finance Authority (FHFA.gov). This can be observed at the micro market level in both the increase in average sales price and the increase in average price per square foot.
The average price of single family homes and condos combined rose 9.9%, resulting in an average price of $396,439 in Denver metro. In the city of Denver, the average price of single family homes and condos rose 9.1%, resulting in an average price of $426,720. Additionally, the total dollar volume sold in Denver metro has increased 9%.
The number of sold listings in Denver Metro and the City of Denver held at 52,855 and 14,309, respectively, and across the board, days on market rose 13.8%, (now 33 days on average) in Denver metro, and the sales price to list price ratio held at 99%. Buyers have more information available to them at their fingertips than ever before, but the value of having a seasoned professional advocating on a buyer or seller’s behalf has never been more important to be successful in today’s market.
Highlights from the 2016 year-end report indicates Cherry Creek North’s average price reached $1,174,869 – up 19.6%, Ken-Caryl North Ranch’s average price is $974,630, up 9.5%, and Monclair’s average price is $559,337, up 10.7%.
The Boulder market continues to be one of the best in the country in terms of appreciation – both in the last year, and over the last 5 years, according to the Federal Housing Finance Authority (FHFA.gov). Appreciation can be seen in the rise in average price in each of the micro market areas within the LIV Sotheby’s International Realty MMR report- most showing double digit increases.
Other conditions that accompany this highly advantageous seller’s market are: low inventory and thus competition, short time on the market- about two months on average, and high sales to list price ratio- of almost 100%. The downsides of this market are being felt by buyers: lack of choices, multiple competing offers, and diminishing affordability. We expect more balance in 2017, but due to a sizzling hot economy, and enduring attractive lifestyle amenities, Boulder will continue to be a terrific investment as well as a fantastic place to call home.
Colorado continues to develop as a national leader in real estate, and locally, LIV Sotheby’s International Realty continues to serve as Colorado’s leading real estate firm. Just recently, LIV Sotheby’s International Realty President, Scott Webber, ranked 83 among the Swanepoel 200’s, Top 200 Most Powerful People in Residential Real Estate, demonstrating the prowess of the LIV Sotheby’s International Realty brokerage.
LIV Sotheby’s International Realty compiles monthly, quarterly and year-end reports to help consumers make better real estate decisions, whether purchasing or selling a home. Reports can be accessed as www.coloradomarketreports.com. For more information, contact Brittanny Havard, public relations manager, LIV Sotheby’s International Realty at 303.486.3738. To service all of your real estate needs visit www.livsothebysrealty.com.