Market Update June 2016

Just-released market update statistics through June 2016 show:

  • The average price for a detached single-family home is up 9.5% over this time last year to a new peak of $461,016.
  • Average days on market is down to 18.8 from 19.4 this time last year – a 3.1% drop.
  • It’s interesting to note that the number of sold homes is down 4.5% from last year (3,891 in June 2016 vs. 4,074 in June 2015) and active listings are up 0.9% from last year (5,321 in June 2016 vs. 5,272 in June 2015) — indicating we could be headed for a market cool-down.

jun_2016_avg_sold_price

Source: Land Title Guarantee Company, June 2016 Residential Market Report

jun_2016_sold_vs_active

Source: Land Title Guarantee Company, June 2016 Residential Market Report

Although it is still a strong seller’s market, we are seeing a decline in the number of offers received. This may indicate a small shift in the market or could be due to summer time priority distraction.

For many people, an average single family home price of $461,016 is simply out of reach. The City and County of Denver is aware of the need to offer affordable housing, as evidenced by this article in the Denver Business Journal. The proposal is for developers to pay between $0.40 and $1.70 per square foot and raise property taxes by $500,000 for the first year in order to create a fund meant to support the development or preservation of 6,000 income-restricted homes. It sounds like it could make taxpayers crabby and make new homes more expensive. The effects from this likely will not be felt until 2018.

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