translateTranslate

Colorado Market Insights

market insight

View individual Market Insights for regional areas

 

Adams County •  Aurora •  Boulder County •  Broomfield/Westminster •  Douglas County •  Jefferson County
Metro Denver •  Mountain Suburbs •  Northern CO •  South Denver

 

 

From all accounts, the spring housing market, and particularly this May, has been an extremely busy one. Great news for all those who wanted to sell is that high buyer demand carried over from last year. However, along with it are inventory concerns in almost all of our Front Range markets, meaning everyone hoping to find and buy a house must be acutely aware of the current conditions and prepare themselves for the possibility of having to win over a home seller with an offer that exceeds all others.

 

Once the contract is signed, this does not a done deal mean! Diligence in the period known as “Pending” is vital. There are hurdles yet to be cleared: things like the home inspection, the buyer's financing being finalized, and the appraisal. Any of these can alter the deal, so astute attention to detail is a mainstay to success.

 

An encouraging sign is that a rising number of potential home buyers surveyed for Fannie Mae's monthly Home Purchase Sentiment Index say their income is higher than it was last year at this time. But will bringing home more money make them more likely to buy a house? We’ll be keeping our eyes peeled and let you know what the trend is in that department.

 

After the financial crisis and housing crash, a distant memory now, there were plenty of homes for sale but very few interested buyers. That appears to have flipped completely, with far more eager buyers in the market than there are homes available to satisfy that demand. Will price gains and mortgage interest rate increases bring a balance to inventory levels? It’s wait-and-see at this time.

 

Yet another encouraging sign is the National Association of Home Builders' Housing Opportunity Index shows we are making more money. In fact, median family income is up from $68,000 last year to $71,900.

 

Having calculated interest rates, median home prices of $440,123, and personal income along with all the other factors that help determine if it’s the right time to buy a house, 6158 happy new homeowners did just that this past May in the Colorado Front Range Area.

 

If you want an accurate read of how many interested home buyers are active in the housing market right now, you can't do much better than a measure of appointments that were made to view the 7257 homes available for sale in May. This number provides a pretty good snapshot, and with showings up 5.2% – a good indication that buyer demand will remain elevated – and the number of building permits issued rising a bit over 7% – a sign of future construction – there are strong signs that inventory levels will be improving in the coming months.

 

Encouraging signs abound, this time for those wanting to sell a home. The difference between what a homeowner expects their appraisal to be and the actual appraised values is shrinking. Right now the national average difference is a mere 0.33%! That appraisal, the professional and lender accepted evaluation of a home’s worth, impacts sale prices more than any other factor, so the minimal distance between perceived value and appraised value speaks well for sale numbers to increase. Homeowners who believe they are getting their full equity are more likely to enter the market, increasing those thin inventory numbers and helping to spur the market forward.

 

May 2018 Stats:

Area Active Units Units Sold Median Sales Price Average Days on Market
Adams County 2018 451 413 $364,000 17
2017 365 403 $326,000 22
Aurora 2018 667 814 $345,000 16
2017 668 855 $310,000 13
Boulder County 2018 763 468 $532,250 46
2017 804 498 $504,950 50
Broomfield/Westminster 2018 313 306 $395,000 14
2017 349 351 $380,000 20
Douglas County 2018 785 458 $472,676 27
2017 820 460 $445,000 24
Jefferson County 2018 649 665 $415,500 16
2017 675 660 $390,000 17
Metro Denver 2018 1792 1448 $449,500 19
2017 1777 1368 $390,000 19
Mountain Suburbs 2018 160 93 $592,500 44
2017 202 75 $515,000 28
Northern CO 2018 916 768 $374,799 66
2017 944 805 $316,061 67
South Denver 2018 761 725 $460,000 14
2017 818 832 $415,500 18

 

Source: REColorado and IRES MLS. Information deemed reliable but not guaranteed.

 

 



keyboard_arrow_up