The City of Castle Pines saw the number of homes for sale reach an historic low at the end of December with only 60 homes available for sale. Even though the number of homes available for sale is low, the pace of sales in 2011 stayed consistent with 2010. 182 homes sold in the City of Castle Pines in 2011 compared to 180 homes selling in 2010.
Inventory is at a historic low of only 60 homes available for sale at the end of 2011. At the end of 2010, 77 homes were available for sale and 105 homes were available for sale at the end of 2009. The 60 homes equate to a 4 month supply of homes available for sale. At the end of 2010 the supply was at 5 months. A healthy, balanced market usually has 5-7 months in inventory. Keep in mind, though, that the year-end months in inventory is typically understating the true inventory level since many sellers pull their home from the market during the slower winter months.
On the negative side, the average sales price in the City of Castle Pines decreased a substantial 13% from 521,785 in 2010 to $453,889 in 2011. Due to the variety of home sizes in Castle Pines and the relatively few homes that sell each year, I also like to focus on the average price per square foot, which helps adjust for the larger homes that sell. The average price per square foot has decreased 10% from 2010 to $160.
The average home price has decreased substantially, but a portion of that decrease is due to the reduced number of higher priced homes selling in 2011. In 2011, only 11 homes sold above $750,000 compared to 26 homes selling above $750,000 in 2010. The reduction of higher priced homes selling has helped lower the average sales price.
The market in the city of Castle Pines continues to perform differently based upon price point. Therefore, to better understand the status of the market I break down market data into two different price categories – under $500,000 and above $500,000. .
For homes priced under $500,000, inventory levels have fallen to a low of 2.7 months compared to 5.0 months at the end of 2010. 126 homes sold in this price range in 2011 compared to 108 homes in 2010. Even though the inventory levels indicate prices should be increasing substantially, prices are staying stable or moving slightly lower depending on neighborhood. For this price point in 2012 I expect prices to stay stable without major moves up or down in pricing.
For homes priced over $500,000 inventory is at 7.1 months, which is an increase from the 5.4 month at the end of 2010. 54 homes sold in this price range in 2011 compared to 73 in 2010. As a home price moves higher, the supply is greater compared to the number of active buyers. In 2012 I believe prices will continue to fall another 5% to 10% at this price point.
Castle Pines North is a great Denver suburb. A variety of new amenities like Elk Ridge Park are great for the whole family. If you would like more information on the real estate market in Castle Pines, Colorado or Douglas County, Colorado, please respond to this blog or contact me directly.