RealtyTrac, a California-based real estate information company, recently released its U.S. Home Sales Report for the first quarter of 2016. The report was filled with good news for home sellers across the nation.
For March of 2016, home sellers were able to sell their properties for an average of $30,500 above the original purchase price, a 17 percent jump. This marked the biggest increase in average price gain since the fourth quarter of 2007, mere months before the beginning of the 2008 recession.
Denver and Other Cities Enter a Real Estate Boom
More than 125 metro areas were covered in the RealtyTrac report. Home sellers experienced the biggest price gains in San Francisco (72 percent), San Jose (60 percent), and Boulder (53 percent). Denver was not far off the pace with average price gains of 40 percent.
In many markets, price gains are equal to or better than the rates that home sellers were achieving during the last housing boom. Commentary from the Q1 report suggests that homeowners would be wise to react to this prime seller’s market by placing their homes on the market during the peak real estate transaction months of late spring and summer 2016.
An All-Time Peak for Denver
March 2016 median sale price for condos and single-family homes was up 9 percent from February 2016 and 11 percent from March 2015. It was the 49th straight month that U.S. median home prices experienced a year-over-year increase.
National median home prices hit their all-time peak in July 2005 at $228,000. The current U.S. median is still 8 percent below that figure, but seven of the markets studied by RealtyTrac set their individual median home price peaks last month, with Boulder ($451,250) and Denver ($325,200) leading the pack.
High demand and low listing inventory are driving home values to an all-time high in Denver. In the current market, many home sales end up in multiple-offer situations that create bidding wars and price jumps.
Despite the rate at which home values are rising in Denver and elsewhere, real estate experts are not yet concerned about a bubble. With the economy continuing to perform well and the favorable mortgage rates, conditions make it likely for the housing market to remain stable and avoid a burst.
Keep Pace with the Booming Market in Denver
Legend Title helps realtors, developers, lenders, and contractors keep up with Denver’s booming real estate market by providing the finest title and escrow services. To learn how we help our clients streamline closings and increase CFPB compliance, please visit our homepage.