In last month's report, we reflected upon the historic and robust 2016 housing market. With 2016 in our rear view mirror, we now can look ahead to see what will drive our market in 2017. Low housing inventory has been a key driver for over two years, and I don't see that changing any time soon Historically, inventory follows a seasonal pattern. We see the bottom in January to February, then peaking in late August to September. Another driver is mortgage interest rates. All predictions indicate a steady rise in interest rates throughout 2017. This could compel buyers who are sitting on the sideline to get into the big game. This - combined with mild temperatures - could cause our spring selling season to start early. I've seen forecasted estimates on housing appreciation ranging from 4 5 percent to 10 percent. I think 2017 will hit somewhere in the middle of those numbers. Active listings in the residential market (single family and condos) decreased slightly by 6.5 percent to 3,989 total units in January, while the number of sold listings decreased by 33.21 percent compared to the previous month. These decreases are normal for this time of the year. 3,989 active listings did represent an all-time low for· any January and only the second-time active listing have dropped below 4,000. Even though total inventory was down, condo inventory was up 15.8 percent year-over-year with single-family inventory down 10.95 percent. Not a good start for buyers. As we look at the single-family home market, the average sold price rose 3.86 percent to $448.374, while the median price remained relatively unchanged at $380.000 Year-over-year, we've seen 9.25 percent and 9.99 percent increases in the average and median sales prices, respectively. The condo market showed 34.05 percent fewer sales than the previous month, while the average and median sales prices dropped to $288,962 and $242,500. respectively. Year-over-year condo sales prices showed impressive gains, an increase in the average price by 6.83 percent and median price by 12.79 percent. Sellers are thrilled by the price appreciation and buyers are frustrated by the low inventory.
What does average look like? Of the homes that sold in January 2017 the average detached single-family home was 1.867 square feet, four bedrooms, and three bathrooms, spent 47 days on market. and was built in 1980. The average attached single-family home/condo was 1,215 square feet, two bedrooms. and two bathrooms. spent 36 days on market, and was built in 1986.
Final Tidbits: If you're a real estate agent working with a buyer under the $400.000 price point, consider yourself lucky. Yes, I said lucky. You have a front row seat to a real estate feeding frenzy. I recently showed a property in Thornton at 5:30p.m. on a week-night I was there with six other real estate agents and their clients. Also in Thornton, I wrote an offer on a property listed at $300,000 only to find out that my client's offer was one of 17, with all of the offers over list price. Managing your clients' expectations is critical in this fast-paced market. What are you seeing in the market? Weigh-in via social media using #dmarstats.