Key Economic Statistics
The current real estate/economic picture in Denver remains positive for the individual home seller in the lower price ranges, but is becoming very stressful for buyers, especially in the prices ranges under $300,000. For the first time in years sellers are receiving multiple offers, and many properties are receiving bids in excess of asking price. There is growing confidence that the Denver area is in the beginning phase of a slow and long recovery. Resale inventory remains markedly lower than previous years, while closed sales are increasing monthly over 2011. With the first 4 months of 2012 showing continuing improvement over last year, interest rates remaining at historic lows, and the employment picture improving, the housing picture in Denver looks brighter than any time in the past 5 years. Home Builders are noticing also, with building permits pulled jumping 52% over last year through March. A quick review of the Band Charts seen in The Berkshire Groups Newsletter show that over half of the Denver area market is trending toward a Sellers market. Some neighborhoods are seeing well marketed and well priced houses receiving multiple offers in a short amount of time. But, the overall market is spotty. The high end remains slow, and most likely will remain so during 2012. Buyers looking in the under $250,000 price range will continue to face stiff competition from investors looking to buy and hold for rental income. In short, the Metro Denver housing market continues 2012 stronger than in 2011, but complete recovery is still in the distance, with noticeable appreciation in the $400,000 price ranges probably not occurring until 2013.
New Home Permits (Metro Denver):
New Home Permits issued through March 2012: 1,040
New Home Permits issued through March 2011: 690
This is a 52% increase at the end of March YTD over 2011.
(NOTE: multifamily permits issued through March increased by 19% over March YTD 2011.)
Denver Area Residential Resale Statistics:
Average Single Family Home Sales Statistics for April, 2012 compared to April, 2011:
Year Prices % of Change Days on Market Inventory
2012 $298,712 +9.83% 90 8,353
2011 $272,339 116 13,874
Average Condo Sales Statistics for April, 2012 compared to April, 2011:
Year Prices % of Change Days on Market Inventory
2012 $178,231 12.49% 91 1,901
2011 $159,854 125 3,973
Total Combined Homes placed under Contract in April, 2012 = 5,681 vs. 4,549 for April, 2011
Total Closed Homes in April 2012 = 3,891 vs. 3,429 for April, 2011
Note: The average and median prices are now trending up, the volume of sales is up, and the available inventory remains historically low, signifying considerable improvement in the Metro Denver market.
- Source: Metrolist, Inc.
Employment Statistics for the Denver-Aurora MSA for March, 2012:
Year Labor Force Employed Unemployed Rate
2012 1,393,502 1,279,179 114,323 8.2%
2011 1,388,123 1,266,030 122,093 8.8%
Consider that as the economy improves, more people will return to the job market, so the number of unemployed may actually increase. In March, the State of Colorado unemployment was 7.8%.
- Source: Colorado Department of Labor
Average National Mortgage Rates as of May 10, 2012
30 Year 15 Year 5/1 ARM 1 Year ARM
3.83% 3.05% 2.81% 2.73%
There was little noticeable fluctuation in the mortgage interest rates from April, 2012.
The mortgage market continues to offer extremely low rates for qualified buyers.
All rates include a 0.6 % to 0.8% discount point. Rates quoted by any lender may not reflect momentary changes. Rates in the Denver area may be slightly higher or lower with a given lender at a given time. All rates noted in this report apply to the best qualified borrowers.
- Source: Freddie Mac National Website
*The Pulse is a review of key economic statistics that affect the Metropolitan Denver Area real estate market. The Pulse is offered monthly as part of The Berkshire Group’s Monthly Update, and is current based on the information offered by the credited sources. The database is the 7 county Metropolitan Denver SMSA:
Tagged: Denver economic statistics, Denver housing economy, Denver real estate, Denver real estate market, economic statistics, employment statistics, national mortgage rates, statistics
