While the median price of a Colorado home remained flat in December 2016 at $315,000, buyers and sellers experienced a 10 percent increase in the median sales price over the course of the year, according to the latest statewide housing report from the Colorado Association of REALTORS® (CAR).
The past year featured a shrinking housing inventory and continued strong demand from a growing Colorado population. These elements shaped a consistent theme for the 2016 Colorado housing market: an incredibly strong sellers’ market.
State of Single-Family Homes
Single-family homes across Colorado ended the year with a median sales price of $335,000. The price is up 8% for the year, but 4.3% less than the price of $350,000 in June. The state’s townhouse/condominium sales price rose to $260,000, up 14.3%, a record for attached dwellings.
State of Condominiums/Townhouses
The 3,900 single-family home listings added in December were 30% less compared to November 2016. As of December, there were 13,332 single-family active listings in the state, just 1,200 more than the 12,153 single-family listings added in June 2016 alone. New townhouse/condo listings in December were 1,384, reflecting an annual low. This brought the total active listings for attached dwellings statewide to 3,349 down 40% from the July 2016 peak.
Overall, the combined total for single-family and condo/townhouse listings on the market in December was less than 16,700. This figure was the lowest total in more than a year.
End of year inventory supplies for both single-family homes and townhome/condominiums were at 1.9 months and 1.5 months, respectively. A market is considered balanced with a 4-7 month supply of inventory.
Sold listings in December 2016 compared to November were down 6.7% to 6,331 for single-family homes. For condominiums/townhouses, sold listings were down 7.1%. However, when reviewing 2016 as a whole, most regions experienced increased sales totals for the year.
Despite the limited inventory, the average number of days on market from listing to sale (DOM) edged up for both types of housing. The DOM for single family homes in December was 59, its highest average since the first quarter of 2016. The condominium/townhome average was 50 DOM, comparable to first quarter, 2016.
Affordability, a measurement based on the relationship between housing prices, prevailing interest rates and local income levels, also dropped. In 2016, affordability for single-family homes was down 12% while the townhouse/condominium affordability index dipped more than 16%. Finally, the foreclosure market posted less than .5% defaults on loans, reflecting a tight credit market.