Colorado real estate: strong demand, record low inventory
Despite typical seasonal and market factors, strong demand and record low inventory keep median sales prices for single-family homes flat while condo/townhouse prices reach a new high.
While temperatures across Colorado remained more summer-like than fall throughout November, traditional seasonal real estate market slowdowns were met head-on by strong consumer demand and a continued shortage of inventory, according to the latest statewide housing report from the Colorado Association of REALTORS®. The combination of factors helped to keep the median sales price for single-family homes flat at $335,000, and drove Colorado townhouse/condominium median sales prices to $255,000, a new high that is up $30,000 from where the median price was in January 2016.
Colorado’s growing population combined with the overall shrinking number of available properties continue to shape the state’s housing markets. November also saw mortgage interest rates begin to creep higher and waiting time for property appraisals also served as contributing factors to the statewide market.
With just 5,576 single-family home listings added in November, there were only 15,645 active listings in the state, a 37 percent decline from the categories July peak.
For townhouse/condos, there were 1,720 new units listed in November bringing the statewide total to 3,639, down 35 percent from its July peak as well (see the chart below).
Overall, there were less than 20,000 homes on the market in November across the state, the lowest total in more than a year, providing just over a two-month supply of single-family homes and, for the first time since CAR has commissioned the monthly reports, a less than 2-month supply of townhouse/condominiums.
Inventory of Active Statewide Listings
With less inventory comes fewer sales, a category that also declined from October to November, down -6.7 percent to 6,636 single-family homes and -11.6 percent to 2,093 condominiums/townhouses. However, compared to November 2015, single-family sales were up 24 percent while condominiums/townhouse sales were up more than 13 percent.
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