Once the 4th of July holiday is over, it’s a good time to assess how the housing market has performed during the first half of the year. This year, the Denver-area housing market is one worth celebrating. According to a recent report by the Denver Metro Association of Realtors, over $1 billion more homes were sold in the first half of this year than during the same period in 2014. Almost $9.3 billion worth of homes were purchased through June, compared with just under $8.2 billion last year. The record dollar amount marked a 13.5% jump from 2014.
This stunning sales volume occurred despite the number of home sales barely budging. So far consumers have purchased 25,636 homes in 2015, not even 1% more than the 24,400 they purchased during the same time period last year. And if you look at just single-family homes, the number of sales actually dropped by 2.5 percent, year-over-year. Condos carried the day, with sales rising almost 9% from the halfway point in 2014. But for the first time ever at the end of June, the average sales price of a single-family home topped $400,000.
One factor driving up the price is the demand that continues to outstrip the supply. When demand rises and supply falls, higher prices are sure to follow. There were only 6,197 homes for sale last month, the lowest ever for a June. Active listings were down 20.5% for the overall market from a year ago. However, listings were up almost 10% from May, giving consumers more than 500 additional homes to buy.
Another bright spot is that 35,060 new listings hit the market in the first six months of the year, slightly more than in the first half of 2014. In fact, almost 9,500 more homes came on the market than were sold in the first six months. This tells us plenty of homes are coming on the market, but they are being sold quickly. Still, there is no doubt the market could use more listings. Go back two years when 49,289 new listings came on the market in the first half of 2013. That’s about 29% more than in the first six months of 2015.
Overall, the Denver housing market has less than a 6-week supply of unsold homes. A balanced market, with supply and demand in equilibrium, has a 6-month supply of homes.