2015 Was a Record-breaking Year for Metro Denver Real Estate

What an exciting year 2015 was…I love this industry! Never a dull moment.

Inventory: The lowest levels of inventory recorded— 1 month for both detached and attached single family homes in the early spring months of 2015. This means it would take 1 month to sell all of these properties if no more came on the market. It is said that 3 months or below is a seller’s market, 6 months or more is a buyer’s.

Market Movement: 67% of sales in April 2015 were under contract in 7 days or less.

Highest Sales Prices: Home prices rose at double digit rates. The average home price climbed from $318,541 in 2014 to $358,578 in 2015 for an increase of 12.56%. Highest ever recorded sales prices for both attached and detached single family homes: $279,495 for attached (November 2015) and $421,201 for detached (June 2015).

Number of homes changing hands: Over 57,000 residential properties had a different owner on December 31^st than the one that owned the property on January 1^st. On average, that is a home closing every 9 minutes!

2016 promises to be a wild ride…

For 2016, explosive and what appears to be sustainable long term population growth (some estimates of 87% growth by 2035) continue to drive home prices and rental property rates to new heights. With the diversity of the industry now in Colorado including alternative energies, wealth management, oil and gas, tourism and technology, the Colorado economy and real estate markets are both among the top in the nation.

We will likely see similar trends in real estate for the Metro Denver area for 2016 for several reasons:

1. Population increase: Gains of 101,000 people over a recent 12-month period put Colorado with the 2^nd fastest growth rate of any state. These folks need homes!
2. Strong Economy: While job growth slowed in 2015, unemployment fell and was significantly below the national average. The Colorado Business Economic Outlook from University of Colorado expects 2016 job growth to tick up again. Business Insider ranks Colorado’s economy the 3^rd best in the nation.
3. Desirable Relocation Appeal: People and businesses want to move to the Denver area. Forbes recently ranked Denver as the nation’s best place to be for business and career growth due to its diverse economy, highly educated workforce and outdoor education activities.

From the crystal ball…

• Interest rates will continue to rise by approximately three-quarters of a percent over the next twelve months
• Though slowing after three years of double digit appreciation, home values are projected to increase by 5.3% over the next 12 months. What does that mean to you? Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait till next year. Your down payment will need to be higher as well to account for the higher home price.
• An election year may cause heavier buying and selling in the first through the third quarters before the elections in November