So How's the Denver Real Estate Market - For April 2010
Marianne Bandy - The Bandy Team, RE/MAX Professionals
1. "Did the Tax Credit Work to Increase Real Estate Sales?" Yes, highest number under contract since 2006.
STAT ONE: Properties that are currently Under Contract are at a 5 year high.
2. Did the Tax Credit ramp up buyers to buy? The figures do not lie, YES.
STAT TWO: More properties closed in April of 2010 than the previous two years in April. Sold data is a trailing indicator of a market turning around. Denver has now had two months in a row of beating the previous year.
3. Did the Tax Credit create more sales in the Spring of 2010? Yes!
STAT THREE: Inventories in the Denver Metro area are at historical low levels. Usually single family and condo inventories grow in the spring of each year. That is not happening in 2010. With lower inventory prices will rise.
In the 0 to $250,000 range, there is a 3.42 month supply. This is considered very low inventory so prices should continue to rise. So yes, the 1st time Buyer credit did make a difference. Conversely, above 1 million dollars there is a 33.29 month supply of homes. It does not appear by the numbers that the $6500 dollar tax credit for existing homeowners made any dent in the upper end market.
STAT FOUR: In March of 2010, 48.2% of all homes sold were to First Time Home Buyers. This is the highest recorded number of first time buyers and April's figures will more than likely exceed that record. The Tax Credit did bring an abnormal amount of buyers into the market.
STAT FIVE: Real Estate Companies had record showings for the month of April, 2010.
RE/MAX Pros Company Averages for April 2010
Week One 452 Daily Average
Week Two 434 Daily Average
Week Three 435 Daily Average
Week Four 416 Daily Average
Week Five 357 Daily Average
Total for Month 12129 showings on 1693 listings
The showing levels are higher than in most summer months! A normal spring month would have 8000 to 9000 showing on 1700 listings. There were definitely more buyers in the market in April than previous months.
CONCLUSIONS:
2010 has been a year of the start of the recovery. There is no question the Tax Credit created an artificial growth that is now over, but Denver will definitely outperform previous years in the number of homes closed, which will hold the inventory lower helping prices to rise. It's a good time to be buying a home in Denver.
What should sellers do in today's market?
•·Consider creating an Extension of the Tax Credit on your home by offering $8,000 worth of points or concessions.
•·Change the dynamics of the inventory in your price range by entering the market as the first home in your neighborhood on the pricing ladder.
•·Be the best conditioned property in all price ranges. Foreclosed properties will be priced better, but will never be in better condition.
What should buyers do in today's market?
•·Enter the market now while rates are ridiculously low.
•·Ask for seller concessions in upper price ranges to make the transaction more attractive to you.
•·When buying a foreclosed property ask your real estate professional about the FHA Rehabilitation Loan program
Give us a call or email if you're ready to sell or buy real estate in Denver.
Marianne Bandy
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"
303-746-7799 cell
www.BandyHomes.com
All real estate data taken from Metrolist, Inc, on May 5, 2010. Denver, Colorado.
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