Update on The Housing Market in Denver, April 29, 2009

The Denver Housing market is improving monthly just as it usually does this time of the year.  March saw improvements over the last two months in the average list price, median list price, number of houses active, under contract and sold, days on the market and sold price as a percentage of original listing price.  Most of these areas, however, are still not performing as well as last year at this time.  The exception being days on the market which showed improvement at 106 days in March compared to 110 days a year ago and 107 last month. 

The low interest rates and the $8000 first time homebuyer credit are helping to improve the market.  The question is how much?  According to HUD, refinancing activity is up 88% and purchase activity is up about 20%.  Many consumers just are not able to buy or refinance at this time either due to one of the following:

Many have credit scores too low

Many do not have the 20% down payment

Many don't qualify because they owe more than their homes are worth

Many don't have jobs and, therefore, don't qualify

The recovery will be slow because of these deterrents. 

Inventory is still very low.  This means, when a home goes on the market that is priced right, there are more people interested in buying it.  We are seeing some bidding wars, not only on bank owned properties, but also on homes that are in great shape and priced right. 

Single Family Detached Homes in the price range $200,000 to $299.999 are the hottest selling market today.  Attached Single Family Homes are seeing most activity in the 

$110,000 to $149.999 range, but the $150,000 to $299,999 range is not far behind.  As I search for single family detached homes for my customers, I am finding many more listings in the over $275,000 price.  The under $275,000 market has less available inventory and, therefore, prices are holding more steady.

Foreclosures have hurt the market.  We certainly have not seen the end of the foreclosures.  They do seem to be slowing down and news reports have indicated that the numbers are down.  Mortgage companies are working with customers and trying to save mortgages that they can.  Modifications are being made and this might be helping the foreclosures to decrease. 

Unemployment is going to be the biggest constraint on the housing market for the remainder of the year.  There is better news recently in this area, also.  The large lay-offs from companies in Colorado have been down in the last 2 months.  This is seen as a good sign.

Advise to sellers:

Pricing your home correctly is extremely important.  Otherwise it can be on the market for a while and that always hurts.  Find a realtor who really knows the market and then listen to what they tell you about pricing your home.  Take a look at this article about pricing your home.

To get the best price in your area, your home needs to be the best. Take the time and spend the money to make it the best.  Not only do most buyers not want to have to do the work themselves after buying, but seeing your maintenance, painting or carpeting needs, but they usually wonder what else might your home need that they can't see.  Here are some previous blogs that might help you to get your home ready for sale.

Don't wait for potential buyers to ask, offer in your listing to pay some closing costs for the buyer.  This will attract more offers.  Just be sure to allow for this when you price the home. 

Advise to buyers:

Get pre-approved.  Mortgage companies are getting very picky and you want to know for sure you will be approved and for how much.  Your seller wants to know, too.  They do not want to waste time taking their home off the market for a contract that will not go through. 

I am ready to help you with your home purchase or with selling your home.  Please give me a call, today, and let me answer any questions you have about buying or selling.  I am committed to your best interests. 

Barbara Salisbury,

Kenna Real Estate

720-884-6040

Barbara@kennarealestate.com