Colorado Home Prices Up 12 Percent But Inventory Up Too
Colorado Home Prices Up 12 Percent But Inventory Up Too
Buying a home in metro Denver got 12 percent more expensive on average in October, but the supply of homes increased year-over-year, welcome news in a market that has had an inventory shortage for most of the year.
The average price of a home, including both detached single-family houses and condominiums, was $363,718 in October, 12.4 percent higher than in October 2014 when the average price was $323,714.
But active home listings increased by 6 percent year-over-year, according to the latest data from the Denver Metro Association of Realtors. October saw 7,156 active listings in 2015, compared with 6,748 last year.
Months of inventory — or weeks, in this case — is a metric used by real estate professionals to describe the amount of time it would take to sell every home currently on the market at the current rate of sale. A balanced market is considered to have six months of inventory.
Homes were on the market 16 percent fewer days on average, according to DMAR's data. Home stayed on the market 31 days in October, compared with 37 days last year.
From September to October, average home prices increased 2.6 percent as the seasonal slowdown that occurs during winter months continued.
"The seasonal changes we're seeing now and for the next few months will likely be short-lived and buyers will want to take advantage of continued low mortgage interest rates and prices that have settled down after an unprecedented summer," saidAnthony Rael, chairman of DMAR's Market Trends Committee.
TheCoreLogic(NYSE: CLGX) Home Price Index for metro Denver in September increased 12.2 percent, while the HPI for Colorado went up 10.4 percent, well above the national average of 6.4 percent.
CoreLogic'sHome Price Index is a metric meant to provide an indication of home price trends among single-family attached and detached homes. The index is compiled using public record and real estate databases.
"The continued growth in home prices is welcome news for many homeowners but more markets are becoming overvalued. In the near term, this trend is likely to continue and pose evaluated risks to the housing economy," saidAnand Nallathambi, president and CEO of CoreLogic. "More has to be done to expand inventories if we are going to address the emerging affordability crisis, especially in hot markets like California and Colorado."
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
You may remember the 1995 movie Things to do in Denver When You’re
"When I decided to sell my home and look for a new place, my first call was to Jim and Ion Real Estate. He listed my condo and in two short weeks my place was under contract. Now, the real fun began, looking for a new place! The Ion Real Estate website was great. I loved the map function and the emails it sent with new listings that matched my previous searches. On Saturday, Jim and I headed out to look at several places I had picked to see. At the time I didn’t really notice how he listened carefully to everything I said about each place from the lighting to the layout. I was even a little sad that I didn’t find anything that day but Jim reassured me not to worry and a week later he had set up some more appointments. I still remember walking into my new place and just knowing. I had only taken two steps into it and I knew I wanted it.
Next came the easy part for me, but this is where having the right realtor and mortgage broker is essential. They make it seem easy! Jim guided me through all the aspects of my sale and purchase. I appreciated how simple each step seemed from making an offer to dealing with inspections. Even the loan seemed easy. I asked a ton of questions, I think it’s the teacher in me. I wanted to understand all the moving parts. Jim explained everything so clearly that I joked that he missed his calling and should have been a teacher, but he didn’t, I’m glad he is helping people find their homes!
Recently one of my close friends mentioned she wanted to stop renting and buy. I immediately referred her to Ion Real Estate. This time I was able to watch with an outsider perspective at the way Jim cued in on my friend’s preferences. Stephanie kept talking about the charm of old houses, a far cry from the sleek modern condo I chose. By the second house-hunting excursion, Jim knew just which home she would pick. As we walked up to the front porch, I saw Stephanie with the same excitement I had felt just a few months earlier. I watched her mentally move in her furniture and this time I saw the smile that crossed over Jim’s face when he knew Stephanie had found her home.
Throughout both experiences, it was clear Jim understands what people want in their homes and how to structure the entire buying experience to be a positive one. I have heard so many crazy stories from people that didn’t chose the right realtor or mortgage broker. They always start by saying, “I didn’t think a realtor made any difference.” It makes a difference! It made a difference for me and for Stephanie. Owning is better than renting; and, it is even better when Jim and Ion Real Estate are guiding you through the process!