Denver’s time in the sun as one of the nation’s most desirable real estate markets continues with no signs of abatement. On July 19, 2017, leading Colorado real estate brokerage, LIV Sotheby’s International Realty, released a micro market report (MMR), indicating that the Denver and Boulder real estate market demonstrated continued growth at the mid-year point of 2017. The MMR compares 2017 statistics (January through June), to that of 2016, for single family homes and attached dwellings for the residential areas the brokerage services. The report indicated that the Denver Metro and Boulder market are performing especially well as we continue into the summer selling season.
“At the mid-year point of 2017, Denver continues to be one of the top performing markets in the country,” said LIV Sotheby’s International Realty president, Scott Webber. “Both new listings and new sales have increased year-over-year, but the increase in sales (6.1%) is about double the increase in inventory (3.3%). Excess demand and short supply continue to drive prices higher, and the average price per square foot is up 7.9% over last year.”
Within metro Denver, the Average Price per Square Foot metric is often the best indicator of the market’s direction and movement. Although the flow of newcomers to the area has tapered slightly in 2017, the real estate market remains robust, and continues to favor sellers. Average time on the market dropped from 25 to 24 days, and full price offers are the norm with an average list price to sell price ratio of 99.7%.
Because changes in Average Price can vary widely depending on the area, breaking the price down by square footage decreases the variability and margin for error when it comes to calculating home price appreciation. According to the Federal Government’s quarterly report of all metropolitan statistical areas (fhfa.gov), Denver is currently ranked 15th in the nation at 10.85% in terms of price appreciation last year.
The Boulder real estate market remains one of the most robust in the state in terms of price appreciation, number of units sold, and overall sales volume on a per capita basis.
“The number of sold listing in the first half of 2017 is up 4.9% from the same time period in 2016, and stood at 2,222 transactions from January to June,” said LIV SIR Boulder managing broker, David Carner. “The Boulder metropolitan area ranked 12th in the nation for the highest rate of appreciation in the federal government’s most recent report, and Colorado is #2 on the list (after Washington, D.C.), with 10.73% appreciation in the last 12 months. We are now entering our third consecutive year of double-digit annual appreciation.”
In Boulder, the balance between inventory (supply) and buyers in the market (demand) varies widely between communities, property types and price ranges. In Louisville and Lafayette, where supply is very low, saw a 36.6% rise in properties sold year over year. Average price is up 9.6%, and the average sold price to list price ratio is 101.2% – an indicator of a hot market. Similarly, Lafayette’s number of sales has increased 17.8%, and the average price has increased 15.8%. On the other hand, Mountain and Canyon Communities have larger inventories of available listings, and not as much demand as there once was for this property type and lifestyle. The number of properties sold there have decreased by -9.5% in the last year, and average price dipped -1.7%. The “market” desires, convenience and amenities over privacy and space in terms of location. It also desires new and modern, over established or traditional.
With Denver Metro and Boulder’s real estate market performing at especially high levels, the value of having a seasoned professional advocating on a Buyer or Seller’s behalf has never been more important to be successful as we continue into the summer selling season.
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.