Fewer Homes Sold In Colorado in October
Prices leveling out while inventory remains a significant challenge
Fewer Colorado homes were sold statewide in October, the fourth consecutive month of declining home sales according to market statistics released today by the Colorado Association of REALTORS® (CAR). The 6,965 single-family homes sold last month were 10 percent fewer than September and 23 percent fewer than the year’s peak number of 9,081 in June. Condominium/townhouse sales dropped 11 percent to 2,336 from September to October and are lower by 17 percent than June’s 2,819 properties sold. Sales were also lower compared to October 2014 – down 2 percent for single-family homes and down just under 4 percent for condominiums/townhouses.
Statewide, the median price of a single-family home in October was $304,000, up 11 percent from October 2014 but down $13,000 from June of this year. For condominiums and townhouses the median price in October of $221,000 was also an 11 percent increase over last October with prices relatively flat and hovering around $220,000 since May of this year.
New listings statewide dropped in October and since June are down nearly 32 percent for single-family homes and -28 percent for condominiums/townhouses extending the challenge of low inventory levels which have been common in Colorado the last several years.
At the end of the month there were 26,290 properties available, 22 percent fewer than in October 2014 and representing less than a 3-month supply, the lowest level in the last five years.
After steadily declining for the first seven months of the year, the average number of days that properties remain on the market before selling has gone up the last three months – from 53 to 61 days for single-family homes and from 41 to 63 days for condominiums/townhouses.
For the full reports on each region, please visit: www.coloradorealtors.com/real-estate-statistics/
In the Metro Denver Region (Denver, Jefferson, Adams, Arapahoe, Broomfield and Douglas counties) sales of single-family homes decreased 9 percent between September and October. Sales in October of 3,579 homes were 25 percent lower than in June and 2 percent below October 2014. Condominium/townhouse sales (1,402 properties) in October were 13 percent lower than September, 21 percent lower than June and 5 percent lower than in October 2014.
The median price of a single-family home was $341,500 last month, an increase of $5500 over September and nearly $17,000 lower than the peak of $358,000 reached in June of this year. For condominiums and townhouses, the median price of $214,500 was $3000 higher than in September. Since May, prices for condominiums/townhouses have not varied much month-to-month. Prices for both categories of property were up about 14 percent compared to October 2014.
The number of days that properties were on the market (DOM) before selling has steadily increased each of the last four months. Since June DOM is up by 5 days for single-family homes and 10 days for condominiums and townhouses. Even so, DOM is more than 20 percent lower than a year ago for both types of properties.
After rising steadily most of 2015, the number of homes available for purchase declined for the third consecutive month to 7,193 single-family homes and 1,655 condominiums and townhouses. As the chart below demonstrates, the supply of inventory as measured by how many months it will last has dropped dramatically over the last two years, extending a pattern that began in mid-2011.
In the Mountain Region (Garfield, Grand, Gunnison, Jackson, Pitkin, Routt, San Miguel and Summit Counties) sales of single-family homes decreased 18 percent between September and October. The 283 homes sold represent a drop of 19 percent since June. Condominium/townhouse sales also declined in October to 386 units, down 7 percent from the previous month. September and October were the two strongest months of the year to date for condominiums/townhouses in this region. Compared to October 2014, however, both categories of home sales are down 2 percent.
The median price for a single-family home in this part of the state was $550,000, down $15,000 from September, the first such price reversal since June of this year. Condominium/townhouse prices behaved similarly, down $5000 from September to $375,000. Compared to October 2014, prices are up 6 percent for single-family homes and 5 percent for condominiums and townhouses.
The number of days that properties are on the market before selling (DOM) has been increasing for the last several months. Since June, DOM is up 14 days for single-family homes and 22 days for condominiums/townhouses. Even so, DOM is 6 percent lower than in October 2014 for single-family homes and 2 percent lower for condominiums/townhouses.
After some increases through mid-summer, the supply of homes available for purchase began declining. At the end of October there were 2,598 single-family homes and 1,750 condominiums/townhouses available for purchase. Those figures are down 14 percent and 19 percent, respectively, compared to September and -17 percent and -29 percent when compared with October 2014. The following chart demonstrates how that translates into how many months the current supply will last without replenishment.
In the Northeast Region of Colorado (Boulder, Larimer, Logan, Morgan and Weld counties) sales of single-family homes in October were 9 percent lower than in September and down 24 percent from June’s 12-month high of 1,584. Condominium/townhouse sales followed a similar pattern, down 17 percent from September and -32 percent since June when 377 properties were sold. Both categories were down 7 percent comparing October 2015 to October 2014.
The median price of a single family home in this region of $297,687 was $2,938 less than September and $17,300 lower than the 12-month high in June. The median price of $229,715 for condominiums/townhouses was a very slight ($715) increase over September. From April through July the median price for this category had been declining. During the last three months, prices have moved up slightly, perhaps signaling a new direction. Compared to October 2014, single-family prices are up 10 percent and condominium/townhouse prices +19 percent.
The number of days that properties are on the market before selling (DOM) took a sharp step upward in October, reversing a downward trend of more than 8 months. Single-family DOM increased by 6 days (from 65 to 71) and condominium/townhouse DOM rose 18 days (from 55 to 73). Compared to October 2014, DOM for single-family homes is still down 9 percent. Condominium/townhouse DOM is actually 1 percent higher than a year ago.
The number of new listings in October was down approximately 30 percent from July for both categories. The inventory of homes available for purchase is down 11-12 percent from July keeping this region well below the 5-7 month supply considered a balanced market. In fact, the Northeast region has the shortest supply (two months or less) in the state.
At the end of October there were 2,892 properties available in this region, down 9 percent from September and -15 percent from October 2014.
In the Northwest Region (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin and Rio Blanco counties) sales of single-family homes declined 3 percent from September to October, the fourth consecutive month of decline. Since June, sales of these types of homes has dropped 22 percent. Sales of condominiums and townhouses were slightly higher (+7 percent) in October but are still down 35 percent from a very busy June with 49 sales. Compared to October 2014 single-family sales are down 7 percent and condominium/townhouse sales are off 18 percent.
The median price for a single-family home rose to $200,000 in October, the third highest level of the year. Condominiums/townhouses performed similarly with a median price of $153,350 in October, also second only to July when the median was $153,750, the highest of the year for that type of home. Compared to October 2014, single-family prices are up 3 percent and condominium/townhouse prices are up 14 percent.
The number of days that properties are on the market (DOM) increased to 130 for single-family homes and fell to 100 for condominiums/townhouses. There is quite a bit of historic fluctuation in DOM in this market perhaps linked to a similar pattern for new listings which resembles a classic rollercoaster ride.
As the chart below demonstrates, this region enjoys the preferred position of a balanced market, one in which there is 5-7 months’ worth of inventory, favoring neither buyers nor sellers. Of note is that the supply of inventory has been steadily declining over the last 12 months and is at its lowest point in six years. At the end of October there were 2,378 properties available, down 16 percent from October 2014.
The Southeast Region of the state (Baca, Chaffee, Crowley, Custer, El Paso, Fremont, Huerfano, Las Animas. Otero, Pueblo and Teller countries) saw sales of single-family homes in October decrease by 9 percent compared to September and -22 percent since June. Condominium/townhouse sales also dropped, down 13 percent from September and 27 percent from June. Compared to sales in October 2014, single-family sales are up 5 percent and condominiums/townhouse sales are up 4 percent.
The median price for a single-family house in October was $219,500, essentially no change from September and about $10,000 less than the June’s high of $230,000. The $154,500 median price for condominium or townhouse last month is $5000 below the year’s high of $159,500 set in September. Compared to October 2014, single-family prices are up 10 percent and condominiums/townhouses are up 5 percent.
The number of days that properties remain on the market before selling (DOM) has stayed pretty constant in the low 80s since May for single-family homes. Condominium/townhouse DOM is down 35 days during the same time period. Compared to October 214, single-family DOM is down 18 percent and condominium/townhouse DOM dropped 47 percent.
Inventory is a significant issue in this region as the chart below indicates. The 5,048 homes available at the end of October are 31 percent less than a year ago. The 3.5-month supply of single-family homes and the 2.1–month supply of condominiums and townhouses is substantially below the balanced market target of a 5-7 month supply recommended by experts.
In the Southwest Region of the state (Alamosa, Archuleta, Conejos, Costilla, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Saguache and San Juan counties) sales of single-family homes dropped 11 percent from September to October and are down 16 percent since June. Condominium/townhouse sales have been up and down the last four months, topping out at 45 sales in July and bottoming out for the year-to-date at 30 sales in October. Compared to October 2014, single-family sales are down 4 percent and condominiums/townhouses are down 38 percent.
The median price of $310,000 for a single-family home in October was $40,000 higher than in September and 14 percent higher than a year ago. In contrast, the median price for a condominium/townhouse was $51,000 lower than in September and 25 percent lower than last October.
After reaching their low point during the summer months, the number of days that properties are on the market before selling (DOM) increased in September and October for both types of properties – up 41 days since August for single-family homes and 61 days for condominiums and townhouses. The Southwest is the only Colorado region in which DOM was higher in October 2015 than in October 2014.
The inventory of homes has been steadily dropping in this area since mid-summer. At the end of the month there were 1,480 properties available for purchase in this region representing a 10-month supply of single-family homes and a 7-month supply of condominiums and townhouses.
The Colorado Association of REALTORS® Monthly Market Statistical Reports are prepared by 10K Research and Marketing, a Minneapolis-based real estate technology company, and are based upon data provided by Multiple Listing Services (MLS) in Colorado. The October 2015 reports represent all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction.
For the full reports on each region, please visit: www.coloradorealtors.com/real-estate-statistics/