The housing market in the Denver area followed it’s typical seasonal decline in January, which was expected, but monthly sales of new and resale properties were still the highest they have been in the past four years for the month of January.
In the month of January, approximately 2500 properties closed escrow (this includes new, resales and condos), however sales were still 28% lower than the previous month but were 4% higher than the previous January.
In the winter months home sales in the Denver area usually decrease 22%, however the average number of properties typically sold during that time was 32% lower. The good news, though, is that despite this decrease in sales it was still the best total in the last four years.
In January, the number of cash buyers increased approximately 27% from December to January and accounted for around 28% of all homes sold in January. This was, however, down from 31% the previous.
The average price being paid for a home in January increased 7% from the previous month and 21% from the same time a year ago to almost $160,000.
Individuals looking for vacation homes and investment properties made up almost 28% of all the homes sold in January, which was an increase of 27% from December 2011. The average price paid for vacation and investment properties increased to $141,000, which was up 1% from December and 9% from the previous January. The highest number of purchases made by individuals buying vacation and investment properties was 28% in February of 2011.
The average price paid for new and resale properties was slightly over $200,000 in January, which was a decrease of 2.5% from December but an increase of 1% from the previous January. Since last summer, this is the first time that home prices have increased on a yearly basis.
The highest average price for new and resale homes was back in June 2006 at right under $250,000. The average price in January is right at 17% less than this peak average price.
It’s estimated that the number of short sales increased approximately 11% from the previous month, 10% from a year ago and accounted for 12% of all resales.
