South Metro | Quarter 2, 2021
As many consumers search for homes with more space and privacy, Denver’s South Metro communities have experienced increased interest from homebuyers. This collection of cities and neighborhoods, which include The Village at Castle Pines, Castle Rock, Highlands Ranch, Lone Tree and more, offer an exciting array of entertainment options, restaurants, businesses, open spaces, and community amenities that have attracted consumers to the area in growing quantities over the last year.
Although the market has seen a slight slowdown in showing activity, likely due to the summer vacation season, this shift may actually work in buyers’ favor. Looking at the number of showings for the month of June, it appears that overall showings declined by -0.1%, according to data from the Denver Metro Market Review for the month of June, a monthly report compiled by Megan Aller of First American Title. With fewer buyers in town competing for the same homes, consumers have slightly more breathing room to tour listings and make decisions about their next real estate investment. This environment opens up more opportunities for both buyers are sellers to reach their real estate, lifestyle, and financial goals.
LIV Sotheby’s International Realty produces a South Metro Micro Market Report analyzing the real estate performance during Q2 of 2021 compared to that of 2020. Overall, Douglas County, which encompasses the South Metro area, experienced a 13.2% increase in the total number of sold listings through June of this year compared to the same time frame last year. For all property types, average home prices rose by 25.3%, from $564,060 last year, to $706,846 so far this year. While showing activity may have slowed since the start of the summer, the pace of the market overall has accelerated in 2021. Compared to January through June of 2020, the average number of days a listing spends on the market in South Metro decreased by 61.1%, leaving listings on the market for an average of just 14 days. Together these positive increases led to an impressive 41.9% rise in the total dollar volume sold in the area, which reached $2,95,858,562.
Thanks to the community’s desirable lifestyle and stunning selection of homes, many consumers are prioritizing South Metro in their search for Colorado real estate. One of the most notable increases the number of properties sold was seen in Heritage Estates. In a comparison to January through June of 2020 to that of 2021, there were 600% more listings sold in this year when seven homes sold compared to the same period of 2020 when there was just one home sold. An uptick in home sales was also observed in Crystal Valley, where the number of property sales increased from 64 listings sold through Q2 in 2020 to 138 listings sold through Q2 of this year.
The area’s popularity has created an upward trend in home values within several neighborhoods through June of this year compared to the same time frame in 2020. For example, Castle Pines saw a 42.1 % increase in average home prices, which brought the average price to $950,407. Highlands Ranch also experienced this trend in appreciating home prices. Listings in this area sold for an average price of $743,013 through Q2 of 2021 – a 25.9% increase from the same period in 2020.
The increased consumer demand for South Metro homes has decreased the average amount of time that local homes spend on the market. Listings in Castle Rock experienced a notable decrease in the average days on market through June of this year, decreasing by 60% from an average of 40 days on market to just 16 days on the market. The Backcountry neighborhood saw the pace of the market pick up even more. In this area, the average days listings spend on the market fell from 58 days during the first half of the year in 2020 to just seven days so far this year.
South Metro, and the various neighborhoods within it, provides the opportunity to enjoy the Colorado living experience with the convenience of close proximity to both nature and the city. With home values on the rise and showing activity currently experiencing a slight lull, now is the time for buyers and sellers to take advantage of the market conditions and create a life they truly love in this community.
This Colorado Micro Market Report includes real estate data statistics for the following neighborhoods (single family, unless otherwise indicated): Backcountry, Bell Mountain Ranch, Broadmoor, Castle Pines, Castle Pines Village, Castle Rock, Colorado Springs, Diamond Ridge, Firelight, Highlands Ranch, Inverness, Keene Ranch, Larkspur, Lone Tree, Parker, Pradera & Timbers, Sedalia, and The Meadows.