Snapshot of state’s housing market shows strength

Buyers in Colorado purchased 18,343 single-family detached homes, condominium and townhomes in the state in the first quarter, a 16 percent increase from sales in the first quarter of 2012, according to a report released today by the Colorado Association of Realtors.

The Quarterly Market Statistical Reports also showed that new listings dropped slightly more than seven percent statewide, primarily due to drops in the Denver metro region and the mountain region.

Meanwhile, the median sales price rose nearly 15 percent to $225,000 compared to the first quarter 2012. Days on the market continued downward, dropping 22 percent to 90 days on average.

The statewide number of active listings for the first quarter was at 30,114, representing a 4.1-month inventory supply.

The 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 in Colorado.  The reports represent approximately 90 percent 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.

Sales of lender-mediated properties (properties owned by banks and other mortgage lenders) declined in all areas of the state, ranging from a drop of three percent in the Southeast to 44 percent in the Northwest area. Overall, such sales represented about 22 percent of all transactions in the first quarter 2013. The median sales price for lender-mediated properties increased 10 percent statewide compare to the same period in 2012.

The CAR Housing Affordability Index, a new statistical measure for Colorado’s housing market, dropped about seven percent to 163 for the state as a whole, declining in each area of the state except the Northwest. An index of 120 means the median household income in that area was 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates.

A higher number usually is interpreted as greater housing affordability. Higher values generally benefit buyers whereas lower values help sellers.

Metro Denver Region (Denver, Jefferson, Adams, Arapahoe, Broomfield, Douglas counties.)

Sales in this region rose 18 percent while median sales price jumped more than 16 percent to $240,000. Prices rose consistently throughout 2012, a trend that continued into the first quarter of this year. One of the consequences of improved prices is that the Affordability Index for Metro Denver has dropped steadily during 2012 and into the first quarter 2013.

Days on the market showed a 29 percent year-over-year drop, the largest drop of any region in the state.

In addition, this region had fewer han 9,100 homes available at the end of the quarter, representing a 2.2-month supply and down about 2000 from the fourth quarter of 2012.

Northeast Region (Boulder, Larimer, Logan, Morgan, Weld counties.) –

This region of Colorado continues its trends from 2012: new listings are up five percent (one of four regions showing an increase in this category); sales increased 19 percent, the seventh consecutive quarter of increases; days on the market decreased by 20 percent (surpassed only by Metro Denver).

The CAR Affordability Index dropped three percent. The region had nearly 5,700 homes available at the end of the quarter, representing a four-month supply.