Commentary -
There is very little change in the basic Metro Denver Real Estate market. Interest rates increased every so slightly in January, but not so potential home buyers would be affected. 92.6%% of those that want a job have one. While builders increased their starts by over 50% from 2011, building material prices, cost of labor, available lots, health insurance, and regulatory issues will continue to act as a governor on the home building community. The most serious challenge to the Denver area residential real estate market will be a continuing lack of inventory.
Key Economic Statistics:
New Home Permits (Metro Denver):
New Home Permits issued through December, 2012: 5620
New Home Permits issued through December, 2011: 3600
This is a 56% Year to Date increase at the end of December over the same period in 2011.
(NOTE: Metro Denver multifamily permits issued through December increased by 181% in December from Year-to-Date 2011.)
Denver Area Residential Resale Statistics:
Average Single Family Home Sales Statistics for January, 2013 compared to January, 2012:
Year Prices % of Change Days on Market Inventory
2013 $301,827 +10.83% 80 5,834
2012 $272,328 103 8,356
Average Condo Sales Statistics for December, 2012 compared to December, 2011:
Year Prices % of Change Days on Market Inventory
2013 $170,769 +16.53% 70 1,260
2012 $146,544 108 2,087
Total Combined Homes placed under Contract in January, 2013 = 4,431 vs. 3,486 for January, 2012
Total Combined Closed (SOLD) Homes in January 2013 = 2,953 vs. 2,470 for January, 2012
Note: The average and median prices continue to trend up, the volume of sales is up, and the available inventory remains historically low, signifying considerable improvement in the Metro Denver market. This position shows little change from November. It is interesting to note that December average sales prices exceeded Novembers.
- Source: Metrolist, Inc.
Employment Statistics for the Denver-Aurora Metropolitan Statistical Area for December, 2012:
Year Labor Force Employed Unemployed Rate
2012 1,415,859 1,311,090 104,769 7.4%
2011 1,400,080 1,290,096 109,984 7.7%
Consider that as the economy improves, more people will return to the job market, so the number of unemployed may actually increase. In November, 2012, the State of Colorado unemployment was 7.5%.
- Source: Colorado Department of Labor-the information is the most recent provided
Average National Mortgage Rates as of February 8, 2013
30 Year 15 Year 5/1 ARM 1 Year ARM
3.53% 2.77% 2.63% 2.53%
Mortgage interest rates increased slightly in the past month, with the mortgage market continuing to offer extremely low rates for qualified buyers. Many homeowners are taking this opportunity to refinance. Mortgage rates will remain low at least through the first quarter of 2013, with actions by the Federal Reserve Bank and the Euro crises acting to restrain interest rates in general. Upward change is on the horizon as the economy improves!
All rates include a 0.4 % 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:Denver, Adams, Arapahoe, Douglas, Broomfield, Jefferson, Elbert Counties. All information shown is the most recent available from the quoted sources.
Tagged: Denver economic statistics, Denver housing economy, Denver real estate, Denver real estate ma
