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.

“These figures are quite similar to what we reported last quarter and demonstrate consistent patterns that speak to a steadily recovering market in Colorado,” said CAR spokesperson, Michael Welk.

“We are seeing more sales, increasing median pricing and fewer days on the market consistently over the last three quarters compared to previous years,” Welk said.

“In many areas of the state sellers are receiving as much as 98 percent of asking price on average and seeing their homes sell very quickly,” he continued.

“Similarly, buyers continue to face significant competition in most areas.”

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.

Below is a snapshot of each region.

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.

 Mountain Region (Garfield, Grand, Gunnison, Jackson, Pitkin, Routt, San Miguel, Summit counties.)

The median sales price rose 20 percent to $428,750 in this region, which includes Colorado’s ski resort communities, while the number of sales dropped by 4 percent to 422. Days on the

market declined nearly 16 percent. With 3,000 active listings, this region has approximately a 15-month supply supply of inventory which, in these areas of the state, is not unusual. New listings of available properties declined 13 percent. The Affordability Index dropped to 93, keeping it as the lowest rating on this scale in the state.

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.

Northwest Region (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin, Rio Blanca counties)

This region of our state had a fifth consecutive quarter of increased new listings, up 7 percent compared to the first quarter 2012.

Sales however, dropped two percent, one of only two regions showing a decline (the Mountain Region is the other).

The median sales price rose three percent and days on the market dropped 11 percent. This area of the state experienced the largest drop in lender-mediated sales, down 44 percent and enjoyed the highest Affordability Index at 221, a number that has been steadily rising for three years.

The Colorado Association of Realtors is the state’s largest real estate trade association representing more than 19,000 members statewide. For more information:www.ColoradoREALTORS.com.