2014 End of Year Real Estate Update
Debbie Taylor, CRS, Realtor, Broker, Co-Owner
RE/MAX of Cherry Creek
Dear Friends and Family:
Happy New Year, I hope 2015 brings you all of the things that you are hoping for! It is hard to believe 2014 flew by and we are starting on a fresh slate. I am pleased to announce a move to a new brokerage after 13 years in my own practice, I will now be able to grow my business and support my clients with all the tools that RE/MAX of Cherry Creek has to offer. I also wanted to take a moment to update you on the past year and thank you for your continued support, business and referrals moving into 2015.
Listed below are the TOP 5 Market Insights from the Denver Metro Association of Realtors 2014:
$17.5 billion in Closed Dollar Volume plus the $4.4 billion in the secondary market resulted in a $22 billion impact on the Denver-area economy
At December month end, there was less than a 500-unit difference between the number of active listings (4,355) and the number of sold/closed listings (3,869)
Condos had a tremendous impact on the 2014 Denver market with a whopping 55.86% increase in sales volume
Inventory remains an issue as the year over year active listings for residential (single family and condo) decreased 45.16%
Year over year average and median sales prices are up 11.22% and 14.57% respectively
Here’s a closer look at five housing stats from NAR’s latest report — reflecting 12/2014 data — to gauge the national market:
Home sales: Single-family home sales rose 3.5 percent in December to a seasonally adjusted annual rate of 4.47 million compared to 4.32 million in November. Single-family home sales are 4 percent above the pace a year ago. Existing condo and co-op sales, on the other hand, dropped 5 percent in December.
Home prices: The median existing-home price for all housing types in December was $209,500 – 6 percent higher than year ago levels. This marks the 34th consecutive month of year-over-year price gains.
Days on the market: Properties typically stayed on the market in December for 66 days, a slightly shorter time frame than a year ago when the average was 72 days. Short sales were on the market the longest amount of time at a median of 98 days in December, while foreclosures sold in 61 days. Non-distressed homes averaged 66 days on the market. About 31 percent of homes that were sold in December were on the market for less than a month, according to NAR.
Distressed sales: Foreclosures and short sales edged up slightly in December, reaching 11 percent of sales compared to 9 percent in November. However, distressed sales are down from 14 percent a year ago. Of December existing-home sales, 8 percent were foreclosures and 3 percent were short sales. On average, foreclosures sold for a discount of 15 percent below market value while short sales were discounted 12 percent.
Inventory: Total housing inventory at the end of December fell 11.1 percent to 1.85 million existing homes available for sale. That represents a 4.4-month supply at the current sales pace, which is down from 5.1 months in November. Unsold inventory is now 0.5 percent lower than a year ago.
All in all the 2015 market is looking very strong with low interest rates. Lack of inventory, rising home values/rents and shortage of rental units will be factors again this year. If you or anyone you know is considering buying, selling or investing this year please call and we can discuss your/their particular needs.
Wishing you a happy, healthy and prosperous 2015!
Debbie Taylor, CRS, Realtor