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Home prices set November record

Highlights:

  • Metrolist releases November numbers.
  • The average sales price a record for a November.
  • The previous November record was in 2006, pre-bubble.

Metrolist NovemberLast month, Denver-area home prices hit an all-time record for a November, according to a Metrolist report released late Friday.Metrolist reported the average price of a single-family, detached home that closed in November was more than $343,000, but not release the exact price. The previous record for a November was in 2006, when the average price of a home was $316,819. In 2006, the real estate market peaked in most parts of the country. Denver is one of the only cities in the country where prices are higher now than before the Great Recession. In November 2012, the average price of a home was $306,773.

In other words, on a year-over-year basis, prices have risen about 12 percent, while they are up more than 8 percent from the previous record high for a November.

Independent broker Gary Bauer, who later plans to do his own analysis of the data, said record average price is a combination of appreciation and the mix of homes being sold.

Prices also rose more than 3 percent from October, when it stood at $332,184.

When all homes were included, the average price was $312,401, 9.3 percent higher than the $285,664 in November 2012.

Meanwhile, the average price of a condo that sold was more than $200,000, Metrolist said. That compares with $198,080 in November 2012 and $204,808 in October.

Homes also are selling faster.

The average days on the market last month was 44, almost  37 percent drop from 70 in November 2012.

The number of unsold homes on the market fell by 9.4 percent on a month-to-month basis to 8,815 last month from 9,734 in October, while they were flat from the 8,847 listings available in November 2012.

“We continue to see tight inventories and an expected increase in average price across the market,” said Kirby Slunaker, CEO and president of Metrolist Inc.

“November typically sees normal decreases in both listing and sales activity, as many potential sellers wait until after the holidays to list new properties,” he said.

November saw a 24 percent decrease in home sales compared to October, and a five percent decrease year-over-year, which aligns with seasonal lull in sales, he said.

“Our brokers and agents have seen a very busy year with a record setting selling season,” Slunaker said.

“While the market has cooled slightly, as one would expect, the numbers year-over-year are incredible and speak to the growing strength of the Denver metro real estate market.”

There are 3,607 placed under contract in November, a 7 percent drop from the 3,893 in November 2012 and a 34 percent drop from the 4,628 in October. There were 3,500 closings in November, a 5 percent drop from November 2012 and a 24 percent drop from 4,628 in October.

Metrolist recently shifted to the new CoreLogic Matrix MLS system, and more than 10,500 Denver brokers and agents attended training sessions this fall to learn the new platform.

“Denver real estate professionals have done a wonderful job adapting to the new MLS system,” Slunaker said. “Heading into 2014, we are excited about the added functionality and collaboration that Matrix brings to the buying and selling process here in the Colorado market.”

Have a story idea or real estate tip? Contact John Rebchook at  JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.