In taking literary license with Charles Dickens’ opening line in A Tale of Two Cities, the 2012 Mountain Suburbs real estate market wasn’t the best of times or the worst of times, but it did experience a marked improvement over the past several years.
Single family home sales were UP 26.95% in 2012 when compared to 2011 (989 vs. 779). Attached unit sales were UP 83.33% for the same time periods (33 vs. 18). The collective market was UP 28.23% (1,022 vs. 797).
The Absorption Rate (the length of time it would take for the market to fully turn) for single family homes ended the year at 162 days for the Mountain Suburbs. 2011 ended the year at 265 days. This was spurred my low mortgage interest rates and diminishing inventory.
For the Mountain Suburbs, the year ended with 439 single family home active listings. This was down 22.44% when compared to the end of 2011 (439 vs. 566).
Below is an overview of sales activity for the past two years for single family homes in the Mountain Suburbs, courtesy of MetroList – the Denver Metro/Suburban Mountain MLS.
2013 promises to be a year of continued change. Here are some thoughts relative to what the Mountain Suburbs market may experience.
- Lack of available inventory will further foster a seller’s market, with both the resale market and new construction benefitting.
- Land sales, once a dormant part of the real estate landscape, will experience a rebirth as production and custom builders seek out new opportunities.
- Home mortgage interest rates should continue to hover below 4.0% for the traditional thirty-year fixed rate mortgage as the economic impacts of the decisions surrounding the fiscal cliff become more apparent.
- Rental rates will continue to increase as the availability of rental units shrinks.