Douglas County Real Estate Market Update – The Last Five Years and What’s Ahead for 2017
Osgood Team Real Estate
19590 E Mainstreet, Ste 204
Parker, CO 80138
303.810.5757 www.osgoodteam.com
SPECIAL REPORT March 2017
Douglas County Market Update: The Last 5 Years, Where we were, and what’s ahead for 2017…
To provide you with ‘Guidance to Smart Real Estate Decisions’, Osgood Team Real Estate prepared this information to help our neighbors understand the extent of the real estate recovery since 2011, specifically addressing Douglas County, Colorado.
Interpreting the data and understanding how to implement change is the key to making the most of any market and finding the optimal opportunities for you.
Residential sales increased in 2011, 2012 and 2013 and have consistently been between 7600 and 8000 per year for the last 4 years.
We have all heard the cliché “hindsight is 20/20.” It’s no different in real estate. When we look back at the data, it’s clear that the market hit bottom following the crash in 2008 and the recovery began in the 2011-2012 timeframe.
As you can see in the chart, we climbed in Number of Sales volume in 2011& 2012 to what is now a much more consistent market. The Douglas County market has recovered all of the equity lost in the market crash and has recovered homeowner’s pre-crash values. Our expectation for 2017 is that this strong market will continue.
The Median Sales Price for Douglas County homes has increased from $288,782 in 2011 to $424,000 in 2016. And prices are still rising with no end in sight.
Denver is one of the hottest real estate markets in the US, and was ranked in January 2017 as the 2nd best place to live in the United States by US News and World Report. Additionally, Douglas County is a hot relocation market as well. One of the key points in all the Economic Development briefings I attend is that our well educated populous is extremely attractive to Corporations looking for a place to invest. Clearly, it’s no mistake that Charles Schwab relocated its headquarters to Lone Tree.
Forbes also ranked Denver as 3rd in the nation for investors in 2016. According to the United States Census Bureau, Denver is America’s fastest growing city – something that is likely contributing to our climb in property values. Clearly, Douglas County’s proximity to the Denver Metro Area has been advantageous to our real estate market and will continue to be so.
So, how long will it take to sell your home?
The real estate term for this is Days on Market. Days on Market are defined as how many days was the home on the market prior to going under contract.
Following the real estate crash in 2008 many homes were sold as foreclosures or short sales. Buyers were apprehensive to purchase because home values were dropping every month. However, in 2011 the market began to rebound. Even though there was the beginning of home value slow incremental increases, the Average Days on Market in 2011 was 100 days. So, it took sellers 100 days to receive an agreed upon contract on their homes.
As you can see, Days on Market has significantly improved since 2011! For the last 4 years, Average Days on Market has been consistently in the 4-6 week (30-45 day) range, and homes in low to moderate price ranges in move in ready condition have had even better results.
Please also know that the optimum time to sell in Douglas County year after year is between February and July. Individuals and Corporations that have the desire to relocate consistently follow in lock step with school calendars. This means that most moves occur following the Spring Semester and prior to Fall Semesters school start. One thing is certain… We need homes to sell…
What is Months of Inventory of Homes for Sale?
The Months of Inventory of Homes for Sale is the time it takes to sell existing inventory at the current rate of monthly sales. The answer indicated a Buyer’s Market, Seller’s Market or an even market. A Buyer’s Market means that there are many homes for sale and prices naturally reflect lower prices to try and get them to sell. A Seller’s Market means that supply is low and demand is high as a consequence of limited inventory, therefore higher prices result.
From 2011 to 2016, the average Months of Inventory ranged from 18 months in 2011 to 2 months in 2016. This means that there was a strong Buyer’s Market in 2011, but since 2013 Douglas County has been in a strong Seller’s Market.
Conclusion: 2017 will be another Seller’s Market with high buyer demand; possible multiple offers (for properties in low and moderate price ranges) and continued rising property values.
What does all this mean to you?
If you are buying, you can expect stiff competition for good homes in most neighborhoods in Douglas County. If you are selling, you can do very well. Knowing the market is key to “Guidance to Smart Real Estate Decisions.” That is why it is Osgood Team Real Estate’s tag line and why this report was prepared for you. Thank you for taking the time to read this report.
If you are in the market to either buy or sell a residential property in Douglas County or the surrounding areas, please contact your Douglas County Experts, Osgood Team Real Estate at: www.osgoodteam.com or email or call 303-810-5757.
Please know we are never too busy for you or your referral. Your referrals are the heart of our business!
