See below for our full report for October 2018 and please let us know if you have any questions. We email this market infographic report on the Denver Real Estate Market each month. To get on the email list, please reach out to marketing@usajrealtystg.wpenginepowered.com and request to be added!
2018 prices have so far hit their peak in May and June at $416,000 for median sale price for attached and detached homes (Source: REcolorado, only including Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson counties. DMAR’s report also includes Boulder, Clear Creek, Glipin, and Park counties which we did not include in the 2 charts below).
The median sale price saw a slight bump this month, going up to $398,950 for single family and condos. This was also up 5.5 percent year-over-year as October 2017’s median sale price was $377,000.
The number of active listings was down from September’s 8,609 to 8,167 in October. See the trends for the last 10 years on the chart below:
Key Takeaways for October 2018 via DMAR for Metro Denver
Stats below include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties
- Active Inventory in October 2018: 8,539
- September 2018 Active Listings: 8,807
- August 2018 Active Listings: 8,228
- July 2018 Active Listings: 7,643
- June 2018 Active Listings: 7,436
- May 2018 Active Listings: 6,437
- April 2018 Active Listings: 5,160
- March 2018 Active Listings: 4,619
- February 2018 Active Listings: 4,084
- January 2018 Active Listings: 3,869
- December 2017 Active Listings: 3,854
- November 2017 Active Listing: 5,131
- October 2017 Active Listing: 6,312
- September 2017 Active Listings: 7,586
- August 2017 Active Listings: 7,360
- Median Sales Price for a condo in Denver metro in October 2018: $299,250
- September 2018: $301,625
- August 2018: $299,000
- July 2018: $300,000
- June 2018: $305,000
- May 2018: $306,331
- April 2018: $297,000
- March 2018: $295,000
- February 2018: $296,000
- January 2018: $285,000
- December 2017: $285,000
- November 2017: $272,000
- October 2017: $275,000
- September 2017: $268,000
- August 2017 $275,000
- July 2017: $270,100
- Median Sales Price a single-family residence in Denver metro in October 2018 was: $435,000
- September 2018: $428,000
- August 2018: $445,000
- July 2018: $450,000
- June 2018: $452,500
- May 2018: $450,000
- April 2018: $455,000
- March 2018: $440,875
- February 2018: $435,000
- January 2018 was $416,000
- December 2017: $415,000
- November 2017: $405,000
- October 2017: $415,000
- September 2017: $409,000
- August 2017: $410,000
- July 2017: $420,000
An Overview of the National Market:
What Does a 39 Percent Drop in Refinancing Mean?
“Thirty-year mortgage rates follow closely with longer term treasuries (10-year). The Federal Reserve has increased short-term overnight rates at a faster pace than the market anticipated. This has caused longer term yields to rise as well. The increase in longer term yields led to the recent jump in mortgage rates.” – ColoradoBiz
Youthful Optimism: America’s Youngest Adults Have the Most Confidence in Real Estate
“Among young adults aged 18-34, 33 percent said buying a home was an excellent investment, compared to 29 percent of prime working-age adults (35-54) and 27 percent of older adults aged 55-and-over. There has been some speculation that young Americans, scarred by the 2008 financial crisis that marked their most-formative years, would be more skeptical of investments in real estate than their older peers. But survey data collected over the past two years as part of the Zillow Housing Aspirations Report (ZHAR) largely show the opposite – the nation’s youngest are also the most bullish on real estate.” – Zillow
Millennials drive homeownership rate increase in Q3
“The homeownership rate increased to 64.4% in the third quarter of 2018, according to the latest report from the U.S. Census Bureau. This is up slightly from 64.3% in the second quarter and from 63.9% in the third quarter of 2017. This increase was driven primarily by first-time homebuyers as more Millennials opted out of renting and entered into the homeownership market.” – Housing Wire
What’s Happening in Denver:
Colorado’s wage growth is exceeding the national average
Colorado is pacing ahead of the rest of the country for wage growth and GDP growth and is seeing significant increases in the number of new business filings and the number of business renewals, according to a report Monday released by the Colorado Secretary of State’s office. – Denver Business Journal
Front Range housing markets may still grow, but price declines are coming, computer model predicts
“The Scout Vision algorithm [created by Connecticut-based analytics firm Location, Inc.] is calling for homes prices across metro Denver to fall an average of 10.5 percent over the next five years. It predicts the peak will come in the first quarter of 2021.” – Denver Post
Who says the Denver real estate bubble has to burst?
“While no one can predict the future, our data strongly suggests that a sudden collapse of Denver’s flourishing commercial real estate markets is highly unlikely. Both annual sales volume and sales price growth have stayed remarkably steady since the turn of the century, and there’s no reason to think this will change anytime soon.” – Colorado Real Estate Journal
Strange things afoot in Denver’s apartment market: Rents and vacancies decline
“The average apartment rent in metro Denver dropped from $1,484.02 in the second quarter to $1,464.90 in the third, a decline of 1.3 percent or $19 a month. Over the past year, average rents are up 3.4 percent.” – Denver Post
Entrepreneurs going strong in Colorado as number of new businesses grows by nearly 10 percent
“More than 30,000 new entities filed with the state in the third quarter, which marks a 9.3-percent increase from the new filings a year earlier, the report, prepared by the Leeds Business Research Division, found.” – Denver Post
No, There’s Not An Apartment Glut In Denver. There’s A Renter Shortage
“Denver continues to create lots of new jobs and people are moving into the state to fill them. Most new arrivals tend to be young apartment dwellers and the construction industry is happy to keep building to accommodate them. ‘As companies continue to find themselves attracted to Denver and bring jobs here, we should see a healthy enough demand side to keep everything in check and to remain, you know, overall pretty healthy,” Vance [Matt Vance, an economist for real estate and investment firm CBRE] said. ‘There’s no forecast for a dramatic correction.'” – CPR
“Average rents in the Denver area have grown to $1,500 a month. Downtown averages $2,000 a month. Yet, many of these apartment dwellers are early in their careers. Now half of Denver renters are considered “rent burdened,” meaning regardless of income they spend more than 30 percent of their paycheck on housing.” – CPR
Report for Metro Denver:
Read Denver Metro Association of Realtor’s full report on last month’s Real Estate trends and statistics in Denver here.
And as always, please let us know if you have any questions!
