Denver area neighborhoods from City Park to Castle Pines Village are seeing big increases in home sales, are selling rapidly and are experiencing a record drop in inventory levels, according to an analysis of Metrolist and Genesis Group data, released today by Fuller Sotheby’s International Realty.
“The metropolitan Denver area is positioned to improve as the national economy begins a stronger recovery,” according to the Genesis Group, which tracks the new and resale housing market along the Front Range. “We forecast 5,500 new production home sales for 2012, approximately a 33 percent increase from the low levels of 2009-2011.”
The market is benefitting from job growth improvements, an upswing in consumer confidence in the Rocky Mountain region and an overall four percent increase in home prices, the first measurable increase in five years, according to the report.
“Tighter inventory and increased buyer demand continues to propel the market in a positive direction,” said James Simpson, a broker associate at Fuller Sotheby’s. “Across the board we are experiencing a shorter time frame for homes on market. All indicators suggest this will continue into 2013 and beyond. Not all price points are reacting in the same manner but the high-end of the market should begin to see the increased activity that the lower price points have been enjoying this year.“
In the third quarter, Denver showed a 33 percent decrease in days on market when compared to this time last year, according to FSIR.
In addition, there has been a rise in average single family and condo prices throughout the metro, up 12.4 percent.
After a dry spell for Castle Pines Village, marked by anemic sales, the area is now up 38.9 percent in number of properties sold when compared to third quarter year to date totals of 2011.
City Park demonstrated positive signs of growth with a 41 percent decrease in average days on market and a 47.8 percent increase in properties sold.
Downtown Denver condos have seen an upsurge as well with a 32.8 percent decrease in number of days on market and a 29.3 percent increase in properties sold.
The single-family and condo market is continuing to show solid strength into the fourth quarter. Downtown and surrounding neighborhoods are statistically up about 10 percent in three major categories, the report shows. They include average sales price, average price per square foot and the volume of homes sold.
“Our inventory is 31 percent less than it was a year ago, however that has improved from earlier this year when it was more than 40 percent less than the prior year,” said FSIR broker associate Steve Blank.
“Activity has slowed slightly from the summer, but showings are better than a year ago and open houses in the more central neighborhoods are extremely active,” Blank said. “We are also starting to see in-fill projects coming off the drawing boards and construction improving with a few new units hitting the market.”
Strong markets such as Washington Park and Platt Park are becoming even stronger, according to FSIR broker associate Casey Miller.
“In looking at two of Denver’s most active neighborhoods, Washington Park and Platt Park, you can clearly see that we’re dealing with a perfect storm here in Denver,” Miller said. “While it is frustrating for many trying to buy and move into these neighborhoods, the sellers once again have the upper hand. It is without a doubt an excellent time to sell. We’re experiencing potentially record-breaking declines in days on market, down 39 percent in West Washington Park. On a price per foot basis, East Washington Park is acting a bit more stable year over year, while Platt Park and West Wash Park have performed exceptionally well and are up over seven percent on a price per foot basis from last year. It’s safe to say that prices continue to increase, up almost 10 percent from 2011, in both of these mature neighborhoods which will always be a core of Denver’s active lifestyle.”
The Boulder area also is showing similar signs of growth.
Except for the Newlands, northeast and northwest Boulder, most neighborhoods are experiencing a significant decrease in days on market, especially in Central Boulder and University Hills where average number of days on market decreased over 34 percent since 2011.
Areas with the greatest increase in property sales include Niwot up 45.6 percent, Northwest Boulder up 46.1 percent, and Northeast Boulder up 40 percent.
“I am personally twice as busy as I was this summer,” said FSIR broker associate Carrie Host. “No signs of slowing down at all.”
Although Evergreen isn’t seeing drastic drops in number of days on market, property sales have risen in most areas.
Genesee is up by 30 percent compared to 2011, while Evergreen Meadows, Shadow Mountain, and Soda Creek have more than doubled the number of property sales since 2011.
“I think most of the purchasing in the Evergreen regional market is from pent-up demand,” said FSIR broker associate Kerry Endsley. A new price point was achieved this year in south Evergreen, $3.5 million; most ever paid for a single-family residence in South Evergreen.
Previous high sake price point was $2.6 million from four years ago. The real estate market improvement in select parts of metro Denver is significantly better than Evergreen, which should get the positive ripple effect from Denver in about two years.”
With the significant decrease in days on market throughout the region, and an increase in number of properties sold compared to one year ago, experts say the market is positioned for continued growth well into 2013.
For more information regarding specific areas visit this Fuller Sotheby’s International Realty link.
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