Denver housing market continues positive momentum
The greater Denver metro area is experiencing positive economic strides in the local housing market. Houses for sale in Denver are selling for greater sums and at a faster rate as the regional and national economy slowly returns to levels seen before the housing bust of 2006.
Increasing home sales
According to DataQuick, a housing market researcher, the number of homes sold in Denver rose in a year-over-year comparison for the fourth month in a row. Across the eight-county Denver-Aurora area, an estimated 3,702 new and resale homes were sold in April. While this figure is down 1 percent from March, it is up 9.1 percent when compared to rates experienced in April 2011. Housing experts declared this year's slight sales rate decrease between March and April to be normal.
In addition to rising home sales levels on a monthly and annual basis, the sales rate experienced for the first quarter of 2012 rose 11.2 percent to 12,646 compared to the same time period last year, states the source. Resale condos and new homes had the greatest increase in number of sales in the past year. Only 635 resale condos were sold in the greater Denver area in April 2011. Exactly one year later, that figure increased 13.5 percent to 721. In contrast, 291 new homes were sold in April 2011, and this rose 13.1 percent in a year-over-year comparison to 329.
The increasing competitiveness of the market is largely the cause for the improving sales rate. Inventory levels drastically reduced in April 2012 in a year-over-year comparison to April 2011, reports The Denver Post.
Improving home prices
Home sales rates are not the only thing to go up. The median price paid for a new and resale house or condo was approximately $219,000 in the greater Denver region. This figure is up 3.7 percent from the prior month and 6.8 percent from last year. Resale condos saw the largest annual price improvement, with resale houses a close second.
The median price for a condo resale was $122,500 in April 2011, according to DataQuick. By April 2012, prices rose 12.2 percent to bring the median price to $137,500. The median cost of a resale house was $211,705 in April 2011, and that price rose by 8.2 percent to $229,000 one year later.