Homebuyer demand remained strong with the average days on market at 18, which ties a record low for any month. Additionally, once again, the average single-family home price in metro-Denver continues to set new records, reaching $540,624.
“With Memorial Day and graduations behind us, we now focus on the summer ahead with anticipation of hot weather and a hot housing market,” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver REALTOR®. “Prices remain hot as both median and average prices continue at double-digit gains. And while some REALTORS® are reporting signs of slowing, those signs have yet to be reflected in the numbers.”
In May, the month ended with 6,437 active listings in the residential market (single family and condos), an increase of 24.75 percent month over month. The number of listings sold increased by 6.45 percent compared to the previous month, and dropped 10.89 percent from last May. Year to date, 21,199 total homes have sold in the Denver-area, down 3.43 percent from 2017.
According to Danyliw, the rise or fall of month-end inventory is affected by new listings and homes under contract. While both new listings and homes under contract are up year over year, the new listings were up even more, driving inventory up to a three-year high for May.
He comments, “Through the first five months of the year, the housing market has remained hot. Economic conditions remain strong, driving homebuyer confidence to purchase in this market of record-high home prices.”
Looking deeper at home price figures in the single-family home market, the average sold price increased 0.1 percent month over month to $540,624, while the median price decreased 0.88 percent to $451,000. The year-to-date average sold price hit $523,255 for the single-family home market, up 10.96 percent from last year, with the median sold price at $442,450, up 9.25 percent. The condo market continues to outperform single-family homes with the average sold price of $356,337, representing a 12.86 percent increase over 2017. The median price of condos increased by 12.96 percent year over year to $305,000. Furthermore, the condo market continues to see a steady drop in days on market, decreasing to 16 days compared to 19 the month prior.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999) and “Premier Market Report” (properties sold between $500,000 and $749,999). In May, 229 homes sold and closed for $1 million or greater, up 10.10 percent month over month and up 21.81 percent year over year. The closed dollar volume in May for all luxury residential was $342,665,753, up 5.98 percent month over month and up 22.92 percent year over year.
The highest priced single-family home that sold in May was $4,400,000 representing six bedrooms, 11 bathrooms and 9,206 above ground square feet in Cherry Hills Village. The highest priced condo sold was $2,350,000 representing three bedrooms, four bathrooms and 3,023 above ground square feet in Denver. The listing and selling agents for both transactions are DMAR members.
“In our front range marketplace, a million-dollar property is just as likely to reflect a very convenient or very private location, or a spectacular setting and view, rather than opulent features,” said Elaine Stucy, DMAR Market Trends Committee member and metro Denver REALTOR®. “Condos over one-million dollars are the exception, offering a posh ambiance from the lobby to the home itself. Still, there is something magical about the term ‘million-dollar home,’ and, so far this year, the dream of owning one has become a reality for 827 buyers, an increase of 33.82 percent over the same time last year.”
The increase in luxury-market home sales is attributed mostly to single-family homes, according to Stucy. Sales of single-family homes priced $1 million or greater increased 37.86 percent year to date, with months of inventory decreasing 4.53 percent from last month. She adds, “While the luxury condo segment has been as hot as a Maserati, sales through May held steady at 66 condos year to date, which is the same as this time last year. Months of inventory in luxury condos did move up 8.33 percent from last month.”
Notably, the Signature Market of homes priced between $750,000- $999,999 has experienced increased homebuyer demand. The sale of homes in this segment increased 17.54 percent month over month and 30.51 percent year to date compared to 2017. The median days on market have stayed steady from April to May at eight, a nearly 43 percent decline from May of 2017.