Home Prices Dropped in 3 Denver Metro Counties
by Lonnie Glessner
This was a big front page story in the Denver Post on the 13th as Boulder, Denver, and Douglas counties all saw year over year median home and median condo prices drop from January 2018 to January 2019.
The 4 other metro counties still reported price increases. Here are the details for each county and this data come from DMAR-
• Adams-median price of detached homes rose 5.1% from $352k to $370k. the median price of attached homes rose 5.5% to $270k
• Arapahoe-median price of detached homes rose 2.8% to $390k and median prices of attached homes rose 2.6% to $248,700.
• Boulder-median price of detached homes dropped 2.7% from $550k to $535k. The median price of an attached home dropped 8.7% from $400k to $365k.
• Broomfield-median price of detached homes rose 4.3% to $483k and median attached home prices rose 24.9% to $405k.
• Denver-median price of detached homes dropped 1.2% to $425k from $430k. Attached home prices plummeted by 12.8% from $390k to $340k
• Douglas-median price of a detached home dropped 2.1% from $493k to $482k. Median attached home prices rose 1.5% from $317k to $321k
• Jefferson-median detached home prices rose 1.2% to $437,500 and attached home prices rose 13.5% to $295k.
As I wrote about last week the Median CDOM in January increased from 13 days to 30 days from January to January; whereas the Average CDOM remained unchanged. This told me that more homes were taking longer to sell. We are also seeing our Sales Price to List Price Ratio drop. This tells us that homeowners are over-pricing their homes at initial listing and what happens if you do that?
Almost always they have to drop the price dramatically later to sell their home and this price drop is being reflected in the year over year slowing of price increases. For example: If a home is properly listed, staged, photographed, marketed, and priced let’s assume that Ideal Price is $450k. And the home was worth $440k last February. But, the sellers decide to list for $475k. But, then you have to drop the price of the home several times and it finally sells for $435k.
Thus, the year over year price dropped a little over 1%. But, if the sellers had listed the home for $450k or $455k and sold for $450k the home’s price would have increased by 2.3% from $440k to $450k. Thus, in essence the sellers CAUSED their home value to drop by being greedy upfront.
Article from Lonnie Glessner with Nova Home Loans – 303-881-6374
Read more details here and here.
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