Colorado housing markets closed out the past decade with a 10-year record or near record lows in several key inventory-related categories, according to the latest monthly market data from the Colorado Association of REALTORS® (CAR). Despite inventory lows, healthy, double-digit percentage gains occurred in the pending/under contract and sold listings across the Denver-metro region and statewide in comparison to the year prior and, median pricing stayed relatively flat from November to December resulting in solid single-digit appreciation across all product types statewide year-over-year.
December data from the seven-county Denver metro area and state revealed the lowest, if not close-to-the- lowest numbers in new listings, inventory of active listings and months supply of inventory for both single-family homes, as well as townhome/condos.
Single-family new listings fell nearly 30% for the second straight month in the Denver-metro region but remain up 9% compared to December 2018. Townhome/condo new listings fell nearly 26%, on top of their nearly 30% dip from October to November 2018 but also remain up 10% over the same time in 2018. Statewide, new listings of single-family homes fell more than 27%from November to December 2018 but remain up 4.3% over 2018. Townhome/condo new listings were off nearly 15% from November to December but remain up almost 9% over December 2018.
Looking to the inventory of new listings, the entire seven-county Denver metro area had less than 6,300 active single-family homes in December, down 29% from December 2018. Townhome/condos totaled less than 2,500 in December and are down 22% from a year prior. Statewide, there were just under 12,900 single-family homes active in December, down 23.6% from December 2018. Townhome condo inventory of actives in December (4,530) faired a little better but was still down 16.5% from a year ago.
Finally, the overall months supply of inventory for both single-family and townhome/condos in the Denver-metro region fell 27% from November to December to just 1.4 months and is down more than 33% from a year prior. Statewide, the 1.8 months of supply is down 25% from December 2018.
The CAR Housing Affordability Index (HAI) – a measure of how affordable a region’s housing is to its consumers based on interest rates, median sales price, and median income by county – improved 3.4% (87 in December 2018 to 90 in December 2019) for the Denver-metro region and remained flat at the statewide level at 95. A higher HAI reflects greater affordability.
“As we move into 2020 that severe lack of choice for buyers will continue to be a challenge statewide and sellers will have to be mindful of how they price their properties initially to ensure sales at the best price,” said Denver-area REALTOR®, Karen Levine. “While sellers continued to experience appreciation in 2019, it was not as robust as seen in previous years. The median sales price increased just 4.1% statewide and the average was just slightly higher at 4.6 percent.”
Taking a look at some of the state’s local market conditions, Colorado Association of REALTORS® market trends spokespersons provided the following assessments:
ESTES PARK
“Larimer County has remained strong through 2019 with no major growth or dips in single-family homes. New listings are down less than a half of a percent – a mere 28 homes less than last year. Townhome-condos are ending the year similarly. Sold listings were up just over a half of a percent from 2018, a 9-property advance. Days on market dropped 1 day from 83 to 82 and the percent of list price to sold is directly in line with single-family homes that are still fetching a healthy 99.3% compared to 99.7% last year. The average sales price has gone up 2.1% to $318,023 in 2019. New listings of townhouse-condos have been a definite trend and the healthiest growth category in 2019 with a 9.4% jump over 2018. While 2019 didn’t show major growth or decreases, this does indicate a strong market with consistent sales and property values in Larimer County.
“2019 was the year for townhouse-condo sales in the Estes Park area while single-family homes are showing signs of a correction in the market. Townhouse-condos had 7.1% more new listings, closed 10.1% more and fetched an average of $354,726, a 12% hike from 2018. Single-family homes are trailing behind with new listings down 14.5% compared to 2018. Closed sales are also down 10% and the average sales price dipped 1.3% to $599,906. Even days on market had substantial lengthening to 104 days in 2019 versus 87 in 2018, a 19.5% increase in the time it took from listing to close,” said Estes Park-area REALTOR® Abbey Pontius.
