Single family home sales were UP 16.86% in 2012 when compared to 2011 (8,039 vs. 6,879). Attached unit sales were UP 20.25% for the same time periods (1,223 vs. 1,017). The collective market was UP 17.29% (9,262 vs. 7,896).
The Absorption Rate (the length of time it would take for the market to fully turn) for single family homes ended the year at 95 days for Northern Colorado. 2011 ended the year at 145 days. This was spurred my low mortgage interest rates and diminishing inventory.
For Northern Colorado, the year ended with 1,495 active listings. This was down 23.88% when compared to the end of 2011 (1,495 vs. 1,964).
Below is an overview of sales activity for single family homes and attached units in the various Northern Colorado areas, courtesy of IRES – the Northern Colorado MLS.
2013 promises to be a year of continued change. Here are some thoughts relative to what the Northern Colorado 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.