The Denver real estate market in the suburbs show some declines in the luxury homes category but remains strong overall. Castle Rock and Parker continue their strong real estate markets through the third quarter despite slowing activity in the upper price ranges.
Buyers remain out in force in the lower and mid-price ranges sometimes driving prices up wit competing offers. Only the higher priced homes for sale exhibit slowing sales even when adjusted for seasonality. Projections are the fourth quarter will continue with this same divergence in home sale trends.
Castle Rock Real Estate Market
Castle Rock is almost identical to 2013 for year-to-date sale (1,522 versus 1,519) as of September 30, 2014 and a stunning +35.2% ahead of 2012 (1,522 versus 1,126). The average days on market continues to decline and has reached just 50 days. Properties are closing for 99.0% of list price on average and 98.1% of the original list price.
The average sales price has inched up slightly to $384,816 per home. However, the medium price continues a strong increase and stands at $327,500. The average price per square foot made a modest increase to $125.23 per square foot. Total sales volume for 2014 is also slightly ahead of 2013 at $585,689,952.
Parker shows similar gains in many areas, as Castle Rock has, but not all. The year-to-date sales have actually declined -10.6% when comparing 2014 to 2013 (1,921 versus 2,148). The 2014 increase in sales over 2012 is a more modest +17.6%. Average days on market is an impressive 43 days from listed to under contract. Properties are selling for an almost identical 99.2% of list price and 97.8% of original list price.
The average sales price though is significantly higher $373,237. Median sales prices are similar with Parker slightly higher at $340,000. Similar to Castle Rock, Parker’s average price per square foot also remains consistent at $122.23 per square foot. Total sales volume for 2014 is measurably above 2013’s level due to a much higher average sales price and stands at $716,988,277.
With the first three quarters in the books, projections are 2014 will conclude with results very similar to 2013. The strong activity below $600,000 will likely offset the cooling effect of the higher prices. Next year should prove to be very interesting to watch the effects of the likely rising interest rates. If rates do rise, several of at the above figures such as average sales price, total sales, total sales volume may be flat when compared to 2014 by year’s end. The article is furnished compliments of Dotson Skaggs, Broker Associate, Kentwood Real Estate. You may reach Dotson at 303-550-4566 or Homes@WeAreColorado.com. Please mention you saw this article.