The Denver-metro housing market is on track for a record year, if recent projections hold true. According to the Metro Denver Economic Development Corp.’s Midyear Economic Outlook report, home closings are predicted to jump almost 20% this year over last. If so, closings in the Denver area will hit a record of 55,000, topping the previous record of 53,482 set in 2004.
Even the economist responsible for the report was surprised by her findings. “I’m kind of pinching myself,” Patty Silverstein, the group’s chief economist, told Insider Real Estate News. Silverstein credited the rise in closings to pent-up demand and an improving economy. “I think there are also a lot of folks out there who have been trying to take advantage of the incredibly low interest rates we have experienced.”
Meanwhile, recent home statistics for the year between August 2012 and August 2013 underscore the optimistic outlook. The number of homes under contract this August over last August is up significantly (19% for single-family homes; 37% for condos). Sold properties have also increased by similar percentages (18% for single-family homes; 31% for condos).
Prospective sellers will be happy to learn that it is taking far less time for those homes to sell; single-family homes spend an average of 40 days on the market, while condos average 37 days (down 37% and 46% respectively over last year.) Prices are up as well (by 11% for single-family homes; 7% for condos).
While rising home prices can create the impression of an expensive market, compared to other cities, Silverstein isn’t worried that this will deter buyers interested in metro Denver. She notes that prices here “have been much more stable than other parts of the country, making home ownership in the region attractive.”
Planning to buy or sell? Get housing market updates at RE/Max of Cherry Creek’s blog.