Both Parker, Colorado and Castle Rock real estate markets experienced a stellar year during 2013 in suburban Denver. In fact, some of the home sales statistics far outpaced the Denver Metro area. While this may not be sustainable over the long term, it comes as a major relief to finally see the Parker and Castle Rock real estate market bounce back so quickly from the down-turn which started in 2006. I have been very busy over the last year and know I know why.
I just analyzed the figures provided by Metrolist, our local MLS provider. The most astonishing figures for Parker were a 25.6% increase in the total number of transactions for 2013 (2,470 sales) over 2012 (1,967) and an incredible jump of 52.2% over 2011 (1,622 sales). An increase in both sales transactions and prices resulted in a 45.4% increase in total sales volume for 2013 ($854,869,470) over 2012 ($587,951,759) and 85.0% over 2011 ($462,103,410). At the same time, average days on market (DOM) fell to 46 DOM (2013) from 77 DOM (2012) and 120 DOM (2011). The median sales price has exhibited a moderate increase to $330,000 (2013) from $288,000 (2012) and $289,900 (2011). We started to see this trend last fall when I wrote about the Parker real estate market report.
Interesting enough, the average price per square foot has shown an almost straight line increase to $159.42 (2013) from $149.00 (2012) and $139.00 (2011). As the market has turned to more of a seller’s market, the average sold price to final list price ratio has risen to 99.2% (2013). It was 97.7% in 2012 and 96.5% in 2011. This goes to show that Sellers are able to hold-out for their price because of increased competition from buyers. Also, lower days on the market accounts for less “desperation” on the part of Sellers. In those previous years, sellers would occasionally take a “low-ball offer” because the home had been on the market longer.
Castle Rock has experienced very similar numbers as both markets tend to mirror each other. Total sale transactions were up 30.3% for 2013 (1,879) over 2012 (1,442) and 62.2% for 2013 (1,158). The rising number of transactions and prices provided a 56.0% jump in total sales volume for 2013 ($712,918,906) over 2012 ($457,103,532) as well as 99.1% in 2011 ($358,157,138). Days on the market also declined significantly to 66 DOM (2013) after 96 DOM (2012) and 120 DOM (2011) in the previous years. The median price increases were very similar to Parker with $325,000 (2013), $288,000 (2012) and $289,000 (2011).
The average price per square foot also performed similar to Parker at $160.40 (2013), $147.00 (2012) and $143.00 (2011). The average sold to final list price is a healthy 98.6% (2013) following 96.9% (2012) and 95.8% (2011).
After strong figures for 2012 and banner numbers in 2013, activity is expected to moderate somewhat for 2014. With January 2014 figures now finalized, initial indicators are confirming those projections. This is extremely encouraging as a gradual, sustainable growth is far superior in the long run. Repeated cycles of a dramatic rise and fall in real estate markets create uncertainty in the market place which is counter productive to steady, continued growth and confidence in the real estate market.