Metro Denver Real Estate RECAP – 2013
This is an excellent time to reflect on the remarkable shifts that occurred in our real estate market in 2013, as well as consider what to expect this year. Last year, the Colorado real estate market enjoyed strong growth. Metro Denver home prices rose to their highest levels in June with an average sales price of approximately $318,000, and held strong through the end of the year. As of mid-December, 2013 overall was averaging a home sales price of nearly $306,000. The most recent Metrolist statistics show that compared to this time last year, the average sold price of a home in Denver increased by 9.5%, and the average days on market decreased by 35%.
The combination of low interest rates and tight inventory in 2013 led to a supply imbalance, spurring a hot selling season in our market that spanned from January all the way through to October. Even in November, the active market resulted in the sale of approximately 5,000 homes, very nearly matching 2012’s peak selling month of June. Much of the price appreciation this year was a direct result of competition in the market caused by extremely low inventories. As the overall supply of homes continues to normalize in 2014, we expect the housing market to move towards a healthy balance of buyers and sellers. Prices should continue to increase, but at a tempered rate. Average mortgage rates continue to hover at historically low levels. Freddie Mac announced that for the week ending December 12, 2013, 30-year fixed rates decreased to 4.42% from 4.46% the week before.
Colorado is expected to be among the top five states for job growth in 2014 with 61,300 new jobs, according to the annual economic outlook from the University of Colorado-Boulder’s Leeds School of Business. These factors – coupled with continued historically low interest rates and a healthy inventory of homes – point to a strong market for the beginning of 2014.
There is great potential for both buyers and sellers right now. If you are considering buying a larger home, downsizing or diversifying your portfolio, The Steller Group is always available to discuss your options and opportunities. As your local real estate experts, we are committed to putting clients’ needs first by offering trusted resources and service with integrity. Our mission is to consistently deliver superior results. We wish you a positive and profitable 2014!