“Owning a home is a keystone of wealth…both financial affluence and emotional security.” Suze Orman
While you consider what it takes to prepare for your future with family estate planning, keep in mind that often, one of the biggest assets people own is their home! Real estate planning is an important consideration in looking at the overall financial health of your estate. But keeping track of the market has been a roller coaster ride for the past few years. Knowing what is ahead for 2016 will help you make educated decisions about your real estate investments for the future.
2015 will go down as one of the best ever for Denver Metro area sellers who reaped the rewards of being in the nation’s hottest market, realizing an average 14% increase in value from just one year ago. On the flip side, buyers felt the pressure of shrinking inventory and rising prices, while the silver lining of historically low interest rates gave buyers a fighting chance to find their new home.
With over 55,500 homes selling for over $20.16 billion closed sales volume, 2015 was a record year which can be attributed to Denver’s economic and population growth over the past few years. In that time, 65,872 new listings came on the market, up 6% year over year, while Days on Market were at 31, down 18%.
To finish the year, the average home price was $363,143, up 12%, and the median home price was $314,000, up 14% from this time last year. This includes detached and attached single family homes. Towards the end of the year, we experienced a bit more balance in some segments of the market as inventory snuck up n some areas and prices began to flatten out after the summer months. However, these were modest changes that could be attributed to seasonal slowing and typical trends.
The local job market recovery continues as we have added over 200,000 jobs since 2008, which leads us to a healthy economic outlook into 2016. Looking forward, high demand will likely continue as more than 100,000 people moved to Colorado over the past 12 months, making it the second fastest population gain in the Nation. Adding to a feverish market are the 83% of renters that say they will want to own a home according to a recent National Association of REALTORS survey.
Overall, we anticipate the next 12 months to bring more buyer demand, similar inventory shortages, growing affordability concerns and possible interest rate hikes, all of which will make 2016 a year to remember.
As you make choices regarding real estate in 2016, be sure to seek out a trusted and experienced real estate agent to help you navigate the constantly changing economic climate and lead you to successful investments for your estate!
Madison & Company Properties