REcolorado Report on the 2014 Housing Market
DENVER – January 20, 2015 –REcolorado, Colorado’s largest MLS and the provider of REcolorado.com, today released its 2014 Annual Report on the Denver Area Housing Market. The report includes 2014 data from REcolorado’s 16,000 members who operate throughout the Denver Metro and surrounding area.
In 2014, job growth and low mortgage rates encouraged consumers to enter the housing market, fueling strong sales. Sales volume increased from previous years’ levels with many Denver area communities seeing double-digit gains. A very active condo-townhouse market was a contributing factor, with strong gains in most measurements. Tight inventory levels and strong demand drove average and median sales price increases throughout the region.
“With average sales prices reaching all-time highs and inventory levels dropping to levels lower than we’ve seen in a decade, 2014 was a record-breaking year for the Denver area housing market,” said Kirby Slunaker, president and CEO of REcolorado. “The 2015 housing market will undoubtedly benefit from a continuation of historically-low mortgage rates and strong growth in the Denver Metro area. With a little more inventory, we could see a terrific home buying season.”
Interest rates stayed lower than expected, helping to fuel buyer activity. In general, sales moved away from the lower-priced and distressed properties, toward upper-end and traditional sales.
“We enjoyed strong sales in 2014 as consumers became more confident in the job market, the housing market, and the economy in general,” said Jan Reinhardt, REALTOR® with RE/MAX Alliance. “I anticipate we will see continued strong sales in 2015, as consumers feel increasingly confident in their ability to purchase a new home.”
For the fourth consecutive year, Denver area single family home sales were up. In 2014, a total of 56,407 homes sold, one percent more than 2013 and a 93 percent increase from just four years ago. The highest sales volume occurred in June, with 5,854 sold listings.heir ability to purchase a new home.”
Many Denver Metro areas saw impressive gains in the number of sold listings:
Bennett (E. Arapahoe & Adams): +19%
Castle Pines +11%
Idaho Springs +32%
Larkspur + 13%
Wheat Ridge +12%
Following the national trend, Denver area foreclosure and short sale activity continued to decrease from peak levels seen in 2011. Just three years ago, lender-mediated properties (properties in foreclosure, short sales, HUD or bank owned) accounted for approximately one-third of all sales. In 2014, 4.8 percent of sales were lender mediated, a 57.3 percent decrease compared to 2013.
Prices experienced another year of gains in 2014. Overall median sales price rose 8.2 percent to $274,900 for the year. Average sales price also rose in 2014, reaching an all-time high of $324,282.
“There was a nice increase in home values in 2014, a welcome sign for those who have been waiting to achieve positive equity,” said Cheri Long, REALTOR®, MB-Priority Properties, Inc. “With interest rates remaining low and inventory levels increasing, I expect an early start to an active 2015 selling season.”
The areas with the greatest year-over-year increase in median sold price include:
Cherry Hills Village +26%
Lone Tree +20%
Wheat Ridge +15%
The price range with the most sold listings was $200,000 to $300,000. The price range with the strongest one-year change in sold listings was $300,001 to $500,000, which had a 15.9 percent increase in sales.
Homes in the $500,000 to $1 million and higher price range saw prices and sales volume rise for the third consecutive year.
“Increases in sales volume, prices, and demand, contributed to a very positive luxury home market in 2014,” said Peter Niederman, CEO of Kentwood Real Estate. “With Denver and its unique neighborhoods becoming some of the nation’s most sought-after areas to live, all signs are pointing to a very strong 2015. “
Following an active summer selling season, inventory levels dropped throughout the fourth quarter of 2014. Weeks of inventory began the year at an 11 week supply, hovered around eight weeks throughout the summer selling season, and ended the year at a record low six-week supply. Homes spent an average of 35 days on the market, 13 days less than the 2013 average, with homes in the $150,000 to $300,000 price range selling the quickest.
The year ended with 5,352 active listings on the market, less than half the number seen at 2011 year end, and lower than we’ve seen in over a decade.
In 2014, a total of 65,714 new listings came on the market, slightly lower than what we’ve seen in the Denver area in previous years.
“Although inventory levels were low in 2014, we saw a steady stream of new listings coming on the market as higher prices encouraged more homeowners to sell,” said Jo Pellegrino-Ellis, REALTOR® with RE/MAX Professionals. “With construction of new homes picking up, interest rates remaining low, and more home owners in positive equity situations, I’m optimistic we will see more inventory in 2015, bringing more opportunities for buyers.”
Single Family Detached
In 2014 there was less inventory in the Denver area single family attached market. A total of 48,803 new listings came on the market in 2014, an 8.4 percent decrease compared to 2013. As a result, the number of sold listings was 41,363, down 6.6 percent compared to last year.
Single family detached sold prices saw welcome gains. Compared to last year, median sales price was up 10.9 percent to $350,000, and average sales price was up 8.3 percent to $360,335.
Condo-Townhome/Single Family Attached
The condo market saw gains in most areas in 2014. The number of sold listings totaled 15,044, up 31.5 percent compared to last year. The number of new condos-townhomes that came on the market was 16,910, up 24.5 percent compared to 2013. Prices were up as well. The average sold price was $225,157, up 13.7 percent and the median sales price was up 13.1 percent to $181,000.percent to $350,000, and average sales price was up 8.3 percent to $360,335.
According to Justin Knoll, president of Madison and Company Properties, “The condo market had a banner year in 2014. After several years in a down cycle, we saw a great deal of activity from first-time home buyers, investors, and those looking to downsize or find a second home in the city. Because condos offer opportunities for a variety of groups and price ranges, I expect 2015 to be another strong year.”