2017 was a historic year for Denver’s housing market as more homes sold for higher average and median prices than ever before, and sales volume reached an all-time high. To top it off, the year closed with the lowest number of homes on the market on record.
In summary, 2017 marked a new record high for the number of homes sold for higher average and median prices than ever before. Closed volume set a new record too in 2017 topping $25 billion – up from $9.9 billion in 2011.
Furthermore, while demand was strong, inventory remained tight. Active listings were at 3,854 total units at the close of December, establishing a new all-time low for any month.
“The lack of active listings should concern us all,” comments Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver REALTOR®. “Only time will tell if more sellers will choose to stay in their current homes, afraid that they won’t be able to find a replacement.”
Year to date, 57,788 total homes sold this past year which is up 2.93 percent from 2016. In the single-family home market, the average sold price increased 1.4 percent month over month to $484,596, while the median price increased 2.47 percent to $415,000. Both the average and median year-to-date sold price set new record highs with the average sold price at $480,140 for the single-family home market (up 8.69 percent from last year), and the median sold price at $410,000 (up 7.89 percent from last year). Year to date, the average and median sold price in the condo market increased to $318,904 (up 10.04 percent from last year) and $270,000 (up 12.15 percent from last year) respectively.
“The big winners in 2017 were the home sellers and they should experience continued success in the New Year,” said Danyliw. “The days of double digit appreciation are in the rear-view mirror as the rate of price growth continues to slow. As affordability applies pressure on the housing market, more opportunities will present themselves to homebuyers.”
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 December, 118 homes sold and closed for $1 million or greater, down 19.18 percent month over month and up 24.21 percent year over year. The closed dollar volume in December for all luxury residential was $179,985,046, down 17.97 percent month over month and up 34.66 percent year over year.
The highest priced single-family home sold in December was $6,500,000 representing six bedrooms, nine bathrooms and 7,353 above ground square feet in Denver. The highest priced condo sold was $3,750,000 representing three bedrooms, four bathrooms and 6,419 above ground square feet in Denver. The listing and selling agents for both transactions are DMAR members.
“While much of our country is in the deep freeze, the Luxury Market in the 11-county Denver metro area was hot, hot, hot in 2017!” stated Jill Schafer, DMAR Market Trends Committee member and metro Denver REALTOR®. “How hot was it? A new record was set with nearly $2.6 billion dollars in annual sales volume - compare that to $1.98 billion in 2016.”
The luxury single-family sales volume has steadily seen the temperature go up over the past five years with an 84.64 percent increase since 2013.
Schafer adds, “We did feel a bit of a chill in December with 19.18 percent fewer luxury homes sold compared to November, but that temperature adjustment didn’t have too much of an impact on annual sales.”
Overall in 2017, single-family sales were up nearly 28 percent and luxury condo sales were up more than 60 percent. More evidence of the strength of the high-end luxury market: nine homes (without acreage) sold for more than $1,000 per square foot in 2017, prices previously only heard of on the coasts according to Schafer.
She comments, “So what does all of this mean for 2018? The temperature is starting out steady between homebuyers and sellers when it comes to single-family luxury homes with 5.88 months of inventory. However, home sellers have a little more control of the thermostat with only 4.69 months of luxury condo inventory. No deep freeze in sight!”
As always, thank you to our partners at the Denver Metro Association of Realtors for compiling this valuable information.
We also thought it would be fun to put all of the market infographics that we have been creating here at West + Main Homes in one place...so here they are, and if you have any questions about how 2018 is shaping up, if you are thinking about making a move into, out of, or around the Denver Metro