LIV SIR Analyzes Micro Markets, Signs of Continued Growth Mid-YearLIV Sotheby's
On July 17, 2015, LIV Sotheby’s International Realty released their mid-year micro market reports (MMR), which indicated that the Colorado real estate market is showing signs of continued growth at the mid-year point. The MMR compares 2015 mid-year statistics, to those of 2014, for single family homes and condos.
“At the midyear point of 2015, Colorado is experiencing the strongest real estate market in recent history,” said LIV Sotheby’s International Realty president, Scott Webber. “An excellent sales performance in many of our unique neighborhoods reflects, among other things, strong consumer enthusiasm for the urban offerings Denver metro provides, along with the close proximity to year-round recreation offered at world class resort markets. There is no doubt that the state will continue to prosper.”
LIV SIR compiles micro market reports for the residential areas the brokerage services, which include10 office locations in Denver metro, including Boulder, Castle Pines, Cherry Creek, Denver Tech Center, Downtown Denver, Evergreen and the resort communities of Breckenridge and the Vail Valley. The report indicates mid-year sales volume in Colorado is up across the board; however this is coupled with increased inventory and small price reductions, meaning the market has cooled slightly, yet remains strong.
In Denver metro, the average price of single family homes and condos combined rose 12.2%, resulting in an average price of $359,350, and 27,627 homes sold. The surging national economy combined with Colorado’s growing popularity is causing the limited supply of inventory in Denver metro to sell at a highly accelerated rate. For properties under $400K, percentage of sold price to original list price was 99.6% in 2014 and 100.1% in 2015.
Highlights from the 2015 mid-year report indicates Hilltop’s average price reached $1,081,667 – up 18.3%, Observatory Park’s average price is $919,375 – up 11.4%, LoHi’s average price is $543,311 – up 15.1%, and Uptown’s average price is $358,289 – up 8.2%.
The Boulder Area MMR indicates that the average price of single family homes and condos combined rose 13% in Boulder County, resulting in an average price of $491,789. In the City of Boulder, single family homes and condos rose 18%, resulting in an average price of $654,968.
The number of new listings coming on the market has dropped 9% in Boulder County and 15% in the City of Boulder. Meanwhile, the number of sold listings have increased 6% and 4% respectively, making for a tight supply of inventory. Combine that with an already strong, and growing demand, and you have significant upward price pressure, and market conditions that continue to favor sellers.
Interest rates, rent, and home values are all projected to rise throughout next year and into the foreseeable future, impacting buyers’ home purchasing decisions. According to the Federal Housing Financial Agency and the S&P Case-Schiller index, home prices have increased 20% nationally over the past three years (approximately 30% in Denver) and industry professionals expect that trajectory to continue.
LIV Sotheby’s International Realty compiles monthly, quarterly and year-end reports to help consumers make better real estate decisions, whether purchasing or selling a home. Reports can be accessed as www.coloradomarketreports.com. For more information, contact Brittanny Havard, public relations manager, LIV Sotheby’s International Realty at 303.486.3738. To service all of your real estate needs visit www.livsothebysrealty.com.