Single family home sales were UP 20.50% in 2012 when compared to 2011 (12,138 vs. 10,073). Attached unit sales were UP 15.59% for the same time periods (4,826 vs. 4,175). The collective market was UP 19.06% (16,964 vs. 14,248).
The Absorption Rate (the length of time it would take for the market to fully turn) for single family homes ended the year at 46 days for South Metro Denver. 2011 ended the year at 86 days. This was spurred my low mortgage interest rates and diminishing inventory.
For South Metro Denver, the year ended with 1,540 single family home active listings. This was down 35.19% when compared to the end of 2011 (1,540 vs. 2,376).
Below is an overview of sales activity for the past two years for single family homes in South Metro Denver, 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 South Metro Denver 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.