Northern Colorado Market Insights
for the month of June 2016
The summer months are the most popular time for vacations and one of the most popular vacation destinations is to visit family. Here’s to all your family visits being such a pleasure that the time of departure comes as a bittersweet moment.
Ah SUMMER; the word itself conjures up images of lazy days spent swimming, sunning and swinging in the hammock with a favorite book and a tall iced glass of one’s favorite beverage.
Perhaps for you this summer vacation will be all about finding your new home?
The most recent NAR survey shows strong existing home sales that are gaining momentum with each passing month of 2016.
In fact the first quarter of this year ended up being the best first quarter experienced since 2007, with sales rising almost 2 percent year-over-year.
Our Northern Colorado statistics for May sales are a good beginning to the summer season, with 746 homes sold and closed. That’s a very nice upward trend from last May’s sales of 715. Median sale prices are very attractive this year at $298,226, a nice uptick from May 2015 when they were $267,546.
There was speculation if we might possibly see increases in days on market due to the new TRID regulations, but May’s 69 days on market was similar to 2015’s May average of 68.
We are inclined to agree with Freddie Mac‘s statement that “…, we still forecast housing to maintain its momentum in 2016. We expect housing to be an engine of growth.”
The experts all concur on a positive assessment for the foreseeable future, as we look at housing starts that are up almost 7 percent nationwide and new building permits up over 8 percent from last year. Will those numbers be enough to meet the increasing demand? Right now inventory stands at about 2-3 months so it depends on the number of homeowners who decide to jump into the market.
Last year in May saw 906 attached and detached single family dwellings available to choose from. This past May’s number of homes available was a reflection of inventory trends at just 756.
In spite of the minimal inventory gains, prices are expected to continue their rise by as much as 3-4 percent over the next five years, and there’s no good reason not to believe these numbers from the latest Pulsenomics survey.
Where do you go on vacation when you live in a vacation destination? How about a staycation, and take advantage of all the wonderful activities right here in Colorado? River rafting, hiking and biking trails, horseback riding, or our favorite sport – HOUSE HUNTING FOR A NEW HOME!