Colorado Housing Market Continuing to Improve
The number of single family homes, condominiums and town homes sold during the third quarter of 2012, taken together, increased compared to the same quarter in 2011, and median home prices statewide rose, according to the latest information included in the Colorado Association of REALTORS® (CAR) Quarterly Market Statistical Reports.
For Colorado as a whole, sales of single-family, condominium and town homes (taken all together) increased slightly more than 14% to 23,987 in the third quarter of 2012 compared to the same quarter in 2011. During that same time period the median sales price statewide rose 12%. Another signal of an improving real estate market was seen in a 23% decrease, down to 83 days on average, that homes are on the market before selling. New listings of homes available for sale declined slightly by about 4%.
“We are certainly encouraged by these trends, especially increasing prices and fewer days on the market,” said CAR spokesperson, Duane Duggan. “Earlier this month Dr. Lawrence Yun, chief economist for the National Association of REALTORS® spoke to Colorado REALTORS® and noted that Colorado is currently outperforming the rest of the nation on many of these metrics. Consecutive quarters of higher sales and increasing median pricing should encourage consumers to return to the real estate market with new confidence.”
The Colorado Association of REALTORS® Quarterly Market Statistical Reports are prepared by 10K Research and Marketing, a Minneapolis-based real estate technology company and are based on data provided by Multiple Listing Services (MLS) in Colorado. The current Q3 2012 reports represent approximately 90% of all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction.
There were a total of 39,842 active listings of houses for sale statewide as of the end of the third quarter this year and there is presently a 5.8 month supply of homes available. The CAR Housing Affordability Index, a new statistical measure in our housing market, dropped about 3% to 166 for the state. An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater housing affordability.
In addition to cumulative statewide statistics, CAR has prepared six regional reports, using the same measures, whose content is summarized below.
Metro Denver Region (Denver, Jefferson, Adams, Arapahoe, Broomfield, Douglas) –
Contact: Michael Welk – 303-263-3217
Results for the six counties in the Denver Metro Region tracked fairly closely to the overall statewide results. Sales were up 15% and median sales prices increased a little more than 12%. Days on the market dropped more substantially in Metro Denver (-37%) than any other area of the state but new listings of available housing were down about 11%, slightly more than three times the statewide decline.
Northeast Region (Boulder, Larimer, Logan, Morgan, Weld) –
Contact: Duane Duggan – 303-449-7000
This region of Colorado showed very strong improvement on almost all measures reported. New listings of available homes were up just over 4% Q3 2012 compared to Q3 2011, sales increased 19%, the median sales price grew by almost 6% and days on the market decreased by just under 9%. The CAR Affordability Index increased slightly to match the state average of 166.
Southeast Region (Baca, Chaffee, Crowley, Custer, El Paso, Freemont, Huerfano, Las Animas, Otero, Pueblo, Teller) –
Contact: Jay Gupta – 719-785-4114
Like their neighbors to the north, residents of Southeast Colorado also saw consistent movement in a positive direction on all measures. New listings of available houses were very strong (almost 12% above Q3 2011) while growth in sales was at about half the state average (close to 8%). Median sales price increased more than 8% and days on the market declined by nearly 13% to 91 days. While the CAR Affordability Index showed a slight decline (-0.5%) the area's score of 198 is very strong.
Northwest Region (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin, Rio Blanca) –
Contact: Sandy Borman – 970-256-9100
New listings of available housing in this part of the state rose 5% from Q3 2012 to Q3 2011. Sales improved more than 11%, median prices increased just over 9% and days on the market dropped significantly (-13%) but are still significant at 126 days. Affordability dropped slightly (-0.9%). The housing supply in the region stands at about 8.3 months with 2526 active listings at the end of the quarter.
Southwest Region (Alamosa, Archuleta, Conejos, Costilla, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Saguache, San Juan) –
Contact: Don Ricedorff – 970-375-7014
This region has the longest supply of available homes (18 months). The number of days on the market in this part of the state rose by 6% comparing 3rd quarter 2012 to 3rd quarter 2011 to 177 days, lengthening the already longest wait in the state to sell a property. New listings of available properties rose just over 6%, sales increased more than 5% and median prices went up nearly 10%. Affordability, measured by the CAR Index, dropped about 2%.
Mountain Region (Garfield, Grand, Gunnison, Jackson, Pitkin, Routt, San Miguel, Summit) –
Contact: George Harvey – 970-729-0111
Sales increased significantly (33%) in this region which includes Colorado's ski resort communities while days on the market dropped (-22%) down to 153. There is still more than a year's supply of inventory (15 months), which in these areas of the state is not unusual, and there were 1834 active listings at the end of the third quarter. New listings of available properties declined slightly (-4%) while the median sales price rose by just over 10%.
Overall the data indicates that Colorado continues to see a recovery from the low point four years ago with some areas doing somewhat better than others.
Spokespersons throughout Colorado are available for interviews or to answer specific regional questions. The reports cited in this press release are all available online at www.ColoradoREALTORS.com/HousingStatistics.
CAR QUARTERLY INDICATORS - KEY METRICS GLOSSARY
New Listings – This is a measure of how much new supply is coming onto the market from sellers. For example, Q3 New Listings are those listings with a system list date from July 1st through September 30th.
Pending/Under Contract – This is the most real-time measure possible for home buyer activity, as it measures signed contracts on sales rather than the actual closed sale. As such, it is called a “leading indicator” of buyer demand.
Sold Listings – This measures how many home sales were actually closed to completion during the report period.
Median Sales Price – This is a basic measurement of home values in a market area and basically states that 50% of the homes sold were either higher or lower than the Median Sales Price.
Average Sales Price – This another basic measurement of home values in a market.
Percent of List Price Received – The mathematical calculation of the percent difference from the list price and the sold price for those listings sold in the reported period.
Days on Market – A way to measure how long it is taking homes to sell.
The Colorado Association of REALTORS® is the state's largest real estate trade association that represents more than 19,000 members statewide. The association supports private property rights, equal housing opportunities and is the "Voice of Real Estate" in Colorado. For more information, visit www.ColoradoREALTORS.com.
Colorado Association of REALTORS®
Duane Duggan, 303-449-7000
Tyrone Adams, 303-785-7112