The following analysis of the Metro Denver & Northern Colorado real estate market (which now includes Clear Creek, Gilpin, and Park counties) is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
Colorado’s economy continues to grow with the addition of 45,900 new non-agricultural jobs over the past 12 months, which represents a growth rate of 1.7%. As I have stated in the last two Gardner Reports, we continue to see a modest slowdown in employment gains, but that is to be expected at this stage of the business cycle.
In May, the state unemployment rate was 3.2%, up from 3.1% a year ago. The increase in the rate is essentially due to labor force growth, which rose by over 55,700 people over the past year. On a seasonally adjusted basis, unemployment rates in all the markets contained in this report were lower than a year ago and are at full employment.
- In the second quarter of 2019, 17,853 homes sold. This is a drop of 1% compared to the second quarter of 2018 but a substantial 59.9% higher than the first quarter of this year. Pending sales — a sign of future closings — rose 5.8%, suggesting that closings in the third quarter are likely to show further improvement.
- Half of the counties contained in this report saw sales growth, while the other half had fewer closings. Sales in the small Clear Creek County fell precipitously. However, it was only a drop of 20 sales.
- The marginal drop in the number of sales compared to a year ago can be attributed to the ongoing increase in listing activity (+34.8%), which continues to give would-be home buyers more choice and less urgency.
- Inventory levels continue to rise, but demand for housing appears to be ongoing. I am not concerned by the marginal year-over-year slowdown and anticipate that sales will rise again in the third quarter.
- Home prices continue to trend higher, but the rate of growth has taken a pause, with the average home price in the region rising by just 2.3% year-over-year to $490,575.
- The drop in interest rates this year has nudged more buyers off the fence and this can allow further price growth as we move through the year.
- Appreciation was again strongest in Park County, where prices rose 6.1%. We also saw strong growth in Weld County, which rose by 6.1%. Home prices dropped in Clear Creek, Boulder, and Gilpin counties, but I do not see this as being indicative of a trend in these markets.
- Affordability continues to be an issue in many Colorado markets and this may act as a modest headwind to ongoing price growth. However, some of the slowing may be offset by very favorable mortgage rates.
DAYS ON MARKET
- The average number of days it took to sell a home in the markets contained in this report rose four days over the second quarter of 2018.
- The amount of time it took to sell a home rose in all counties except Gilpin when compared to the second quarter of 2018.
- It took an average of 29 days to sell a home in the region — a drop of 13 days compared to the first quarter of this year.
- It is likely that the drop in time-on-market was a function of the emerging spring selling season as well as falling mortgage rates.
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
For the second quarter of 2019, I continue the trend I started last summer and have moved the needle a little more in favor of buyers. I continue to closely monitor listing activity to see if we get any major bumps above the traditional increase because that may further slow home price growth. However, the trend for 2019 will continue to be a move toward a more balanced market.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
Great end unit at 6615 Desert Willow Way unit A3 with trees surrounding it, a lot of natural light inside. This unit has been well maintained and updated, new flooring on main floor and updated kitchen. Tankless hybrid hot water heater. Close to a City Park, Water Way Park. With 2 bedrooms upstairs and a bedroom and family/play area lower level, you have room to spread out. Call for your private showing at (970) 215-2676 for more information or click the link below for more details.
This must see home at 5506 West 27th Street in Greeley sits on half an acre with mature trees and shrubs and a view of Josephine Park. The large patio and finished basement complete with a bar/lounge area is the perfect place to entertain guests! No HOA, New exterior paint, roof, and gutters. Walk out basement, and two bedrooms in basement. Two brand new hot water heaters. One year old Furnace with a humidifier. All appliances stay with home. Call for your private showing at (970) 215-2676 for more information or click the link below for more details.
This 3 bedroom, 3 bath townhome at 1925 Waters Edge Street Unit B in Fort Collins backs to Spring Canyon, located near CSU and Rolland Moore Park. This unit has new carpet, new paint, updated windows. Enjoy the private patio and the open green space around this unit. This one won’t last long! Call for your private showing at (970) 215-2676 for more information or click the link below for more details.
This home beats brand new! 3312 Tupelo Lane has so much to offer with 5 bedrooms, 3.5 bathrooms, and over 2000 sq. ft.! The main floor has been updated with wood-like tile and fresh paint and is great for hosting guests with the open and inviting spacious kitchen, dining, and living area. The upper level offers 4 bedrooms with a large laundry area, master suite with 5 piece bathroom to relax and unwind in. The best part is the garage! It offers enough space for 3 vehicles with room for storage. Call for your private showing at (970) 215-2676 for more information or click the link below for more details.
Fantastic patio home at 1523 64th Avenue in The Dens neighborhood at Fox Run! This spacious home offers five bedrooms, three bathrooms, a fully finished basement, vaulted ceilings, a gas fireplace, central air, Alder Tharp cabinets, hickory floors, Pella windows, granite counter tops, over sized garage, and a private covered deck! HOA includes sprinkler blowout, snow removal, trash, lawn care, basic cable television and management. Completely maintenance free living! Call for your private showing at 970-215-2676 for more information or click the link below for more details.
This charming home at 327 6th Ave in Old Town Longmont offers 2 bedrooms, 1 bathroom, a fully refinished kitchen with soft close drawers and cabinets, newer paint, updated bathroom, and refinished floors all in 2016. Great lot! One block from a park, and within walking distance to Main Street. Enjoy spring and summer on the flagstone patio and watch the Iris bloom. All appliances stay; including deep freezer and washer and dryer. Hot water heater replaced in 2017. Call for your private showing at 970-215-2676 for more information or click the link below for more details.
Come see this well maintained condo at 1602 Edora Road! This condo is close to schools, shopping, and I-25. It offers new carpet, new windows, a newly refinished bathroom, and fresh paint throughout the entire home, even the garage! Has a fenced back yard. This condo sits on a crawl space shared with the two other units. Call the listing agent for a tour! Call for your private showing at 970-215-2676 for more information or click the link below for more details.
Fort Collins, over the last 12 months, has seen sales of homes priced $1,000,000 and over almost double.
There have been 47 sales of these luxury properties during the last year compared to 24 sales the year before that.
The current pace of roughly 4 of these properties selling per month is both unprecedented and very different compared to the other Northern Colorado markets.
Loveland, Greeley and Windsor have only seen very slight increases in sales of homes priced over $1,000,000.
So where are these homes selling in Fort Collins? These are the top neighborhoods for luxury sales:
- Fossil Lake Ranch
- Old Town
- The Hill at Cobb Lake
- Linden Lake