Highlights:
Denver homes fastest selling in the U.S. in September.
Denver home on the market for an average of a mere 24 days.
Denver No. 2 in price appreciation, months of supply, RE/MAX reports.
This 4,032-square-foot, 4-bedroom, 4-bathroom home at 552 Cook St., listed by 8z Real Estate broker Leslie Resnick, is under contract. Denver homes were the fastest selling in the U.S. last month.
Denver homes were the fastest selling in the U.S. last month, according to a national report released on Thursday.
Denver homes last month stayed on the market an average of a mere 24 days, the lowest days on market (DOM) of the 53 metropolitan statistical areas tracked by Denver-based RE/MAX.
San Francisco was No. 2, by that metric, with average days on the market of 25. Nationwide, the average DOM was 62, according to the report.
Denver was No. 2 by two other metrics: median year-over-year sales price increase and months supply of inventory.
Denver showed a median sales price increase of 13 percent, only bested by Nashville, Tennessee, of 13.7 percent. Nationwide, the median sale price rose by 7.2 percent.
Denver only had a 1.6-month supply of homes on the market in September. Only San Francisco, with a 1.5-mont suppy was lower.
Across the country, the average supply of unsold homes was 4.5 months, according to RE/MAX.
Anthony Rael, Chairman of the Denver Real Estate Market Trends Committee, said the RE/MAX report was consistent with other recent reports, including the DMAR report released last week.
“DMAR reported last month was the best September on record on many levels,” Rael said.
The RE/MAX report, he said, “also is consistent with other national reports, such as Case-Shiller,” Rael said.
Rael predicted that October also will be a very strong market for housing activity in the Denver area.
“Interest rates are still very, very good, and people want to take advantage of them,” Rael said.
However, this month is not a good time for sellers to try to push the limits of the market.
“My relocation buyers in the upper end, let’s say $500,000 to $650,000 to $700,000, are seeing asking price reductions,” Rael said.
“And it’s not $5,000, but $10,000, $20,000 and $30,000,” he said.
As it typically does for seasonal reasons, prices peaked in June and have tapered ever since, he said.
“I think people who listed at the tail end of the frenzy read in the papers and in blogs how hot the market is, and got a little too aggressive in their pricing,” Rael said.
However, he does think closings will start to drop in November, but that won’t be driven by seasonality or a lack of buyer demand, he said.
Rather, he expects a bigger than normal drop in closings because of new mortgage rules that went into effect on Oct. 3.
Borrowers are getting new forms that are supposed to make it easier for them to compare loan offers, as well as to see if the final loan terms differ much from the initial estimate.
The change was required by the Dodd-Frank financial reform law. It directed the Consumer Financial Protection Bureau to combine and simplify older disclosure documents required by two federal laws.
“Loans that would have closed in 25 to 30 days will now take 35 to 45 days,” Rael said.
Loans that might have closed in November, will close in December of January, he said.
“I expect to see a slowing in closings in November, but an increase in closings in early 2016,” Rael said.
Meanwhile, nationwide, last month was the best September for home sales since RE/MAX began tracking data.
“Home sales usually cool down in the fall and it looks like this year is no exception,” said Dave Liniger, CEO and co-founder of RE/MAX.
“Prices area also moderating on a month-to-month basis and mortgage levels remain low,” Liniger pointed out.
“This translates to more attractive home affordability,” Liniger said.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.
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