Home Sales Improve During First Quarter of 2016

Steadily Rising Prices Making Homes Less Affordable For Some.

During the first quarter of 2016 (January, February and March) most areas of Colorado saw an increase in the number of both single-family homes and condominiums/townhouses sold compared to the same time period in 2015.  The 15,742 single-family homes sold were an increase of 5 percent over the first quarter of 2015 and 33 percent better in March than in February of this year.  Similarly, condominium/townhouse sales (4,842) rose 2 percent over the first quarter of 2015 and were up 24 percent compared to February.

Home values continued to rise in March as the statewide median price for single-family homes rose to $319,900, an increase of 8 percent over March 2015 and $10,000 more than in February of this year.  The median price for condominiums and townhouses statewide reached $238,000 in March, an increase of 12 percent over a year ago and approximately $9,000 more than last month.  First quarter results are similar with prices up 8 percent for single-family homes and 12 percent for condominiums/townhouses compared to the first three months of 2015.

Rising prices may make homes less affordable if wages are not rising at a similar rate.  As the following chart demonstrates, homes have become steadily less affordable for some buyers in Colorado over the last four years.

The number of new single-family home listings (22,853) during the first quarter of 2016 was

1 percent lower than the same period last year.  March was 37% better than February suggesting improvement in this category may be on the way.  The 6,470 new condominium/townhouse listings during the first quarter of this year was a drop of 5 percent compared to last year.  March 2016, however, was 28 percent better than February.

The number of days it takes to sell homes across all areas of Colorado continues to decline, down to 61 days on average for single-family homes and 54 days for condominiums and townhouses.

Improving sales and not enough sellers bringing their homes into the market means that inventory continues to hit new lows as properties move quickly and are not easily replaced.  The number of active listings during March dropped 25 percent compared to March 2015 to 19,427 homes.  That represents about a 2-month supply of single-family homes and less than a 2-month supply of condominiums/townhouses, well below the 5-7 month supply experts believe is necessary for a balanced market.

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 3,224 single-family homes during March were 33 percent higher than in February but lagged 3 percent behind March 2015.  Condominium/townhouse sales (1,215) were 23 percent better than February but 7 percent below where they were a year ago.  For the first quarter, single-family sales were up 5 percent and condominiums/townhouses +2 percent compared to 2015.

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The median price of a single-family home rose about $15,000 from February to March to $370,000, a 9 percent increase from a year ago.   March’s median price for a condominium or townhouse was $234,221, up about $7,000 from February and 12 percent better than 2015.  First quarter 2016 single-family median prices are 8 percent above 2015 and condominium/townhouses prices are 16 percent higher.

The average number of days a property was on the Metro Denver market in March before selling dropped 6 percent to 31 days.  The 5,637 active listings in March was sufficient to last only one month given current rates of listing and purchase.

In the Mountain Region (Garfield, Grand, Gunnison, Jackson, Pitkin, Routt, San Miguel and Summit Counties) sales of 169 single-family homes during March were 8 percent higher than in February but lagged 12 percent behind March 2015.  Condominium/townhouse sales (232) were 39 percent better than February and 3 percent above where they were a year ago.  For the first quarter, single-family sales were up 1 percent and condominiums/townhouses +3 percent compared to 2015.

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The median price of a single-family home rose about $25,000 from February to March to $485,000, a 10 percent increase from a year ago.   March’s median price for a condominium or townhouse was $415,000, up about $10,000 from February and 3 percent better than 2015.  First quarter 2016 single-family median prices are 9 percent above 2015 and condominium/townhouses prices are 2 percent higher.

The average number of days a property was on the Mountain market in March before selling dropped 8 percent to 180 days.  The 4,133 active listings in March were sufficient to last 6-8 months given current rates of listing and purchase.

In the Northeast Region of Colorado (Boulder, Larimer, Logan, Morgan and Weld counties) sales of 1,100 single-family homes during March were 38 percent higher than in February but lagged 7 percent behind March 2015.  Condominium/townhouse sales (224) were 44 percent better than February but 19 percent below where they were a year ago.  For the first quarter, single-family sales were down 2 percent and condominiums/townhouses -15 percent compared to 2015.

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The median price of a single-family home rose about $12,500 from February to March to $327,500, a 9 percent increase from a year ago.   March’s median price for a condominium or townhouse was $267,500, up about $26,000 from February and 21 percent better than 2015.  First quarter 2016 single-family median prices are 8 percent above 2015 and condominium/townhouses prices are 13 percent higher.

The average number of days a property was on the Northeast Region market in March before selling rose 5 percent to 80 days.  The 1,996 active listings in March was sufficient to last 1-1.5 months given current rates of listing and purchase.

In the Northwest Region of Colorado (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin and Rio Blanco counties) sales of 317 single-family homes during March were 39 percent higher than in February but lagged 6 percent behind March 2015.  Condominium/townhouse sales (27) were 10 percent lower than February but 36 percent above where they were a year ago.  For the first quarter, single-family sales were unchanged and condominiums/townhouses rose 39 percent compared to 2015.

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The median price of a single-family home rose about $2,000 from February to March to $190,000, a 3 percent drop from a year ago.   March’s median price for a condominium or townhouse was $152,900, up about $19,000 from February and 17 percent better than 2015.  First quarter 2016 single-family median prices are 3 percent above 2015 and condominium/townhouses prices are 12 percent higher.

The average number of days a property was on the Northwest Region market in March before selling dropped 2 percent to 133 days.  The 2,058 active listings in March was sufficient to last about six months given current rates of listing and purchase making this one of two regions in Colorado with a “balanced market.”

In the Southeast Region of the state (Baca, Chaffee, Crowley, Custer, El Paso, Fremont, Huerfano, Las Animas. Otero, Pueblo and Teller countries) sales of 1,403 single-family homes during March were 33 percent higher than in February and 11 percent better than March 2015.  Condominium/townhouse sales (164) were 21 percent better than February and 5 percent higher than a year ago.  For the first quarter, single-family sales were up 16 percent and condominiums/townhouses +15 percent compared to 2015.

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The median price of a single-family home rose about $3,000 from February to March to $223,000, an 8 percent increase from a year ago.   March’s median price for a condominium or townhouse was $161,202 up about $5,000 from February and 13 percent better than 2015.  First quarter 2016 single-family median prices are 8 percent above 2015 and condominium/townhouses prices are 14 percent higher.

The average number of days a property was on the Southeast Region market in March before selling dropped 43 percent to 61 days.  The 3,539 active listings in March was sufficient to last only one month for condominiums/townhouses and two months for single-family homes given current rates of listing and purchase.

In the Southwest Region of the state (Alamosa, Archuleta, Conejos, Costilla, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Saguache and San Juan counties) sales of 104 single-family homes during March were 55 percent higher than in February and 3 percent better than March 2015.  Condominium/townhouse sales (35) were 75 percent better than February and 46 percent ahead of where they were a year ago.  For the first quarter, single-family sales were down 1 percent and condominiums/townhouses were up 15 percent compared to 2015.

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The median price of a single-family home rose about $22,000 from February to March to $299,000, a 5 percent increase from a year ago.   March’s median price for a condominium or townhouse was $319,900 up about $82,000 from February and 74 percent better than 2015.  First quarter 2016 single-family median prices are 2 percent above 2015 and condominium/townhouses prices are 10 percent higher.

The average number of days a property was on the Southwest Region market in March before selling dropped 23 percent to 150 days.  The 1,212 active listings in March was sufficient to last 6-8 months given current rates of listing and purchase, making this one of two regions in Colorado meeting the “balanced market” standard.

For the full reports on each region, please visit:  www.coloradorealtors.com/real-estate-statistics/