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METRO DENVER REAL ESTATE MARKET UPDATE - NOVEMBER 2011

By
Real Estate Agent with Bandy Homes

Market Metrics:

 

In October, the unsold inventory of active listings in metro Denver hit a new low at 14,156 units, the second month in a row for setting a new low record.  As we are moving into new territory, there is steady demand by buyers and low inventory.  When one compares the Denver housing market to the nation, Denver continues to hold its own. When compared to October of last year, # of sales is about even, prices are about the same, while inventory is down 30% for single family homes and down 46% for condos/townhomes.  Since demand is holding steady and inventory has dropped sharply, these fundamentals point to what should be firmer or increasing prices in the months ahead.

 

Monthly Market Recap:

 

Single Family:

Condos/Townhomes:

Active Inventory is 11,504 units at month end

Active Inventory is 2,652 units at month end

Sold units is 2,482

Sold units is 701

Average Days on Market is 102

Average Days on Market is 102

Median Sold Price is $226,021

Median Sold Price is $125,000

Average Sold Price is $269,503

Average Sold Price is $160,723

 

 

October Year-to-Date Market Recap (2011 versus 2010):

 

Single Family:                                              

Condos/Townhomes:

Active Inventory 11,504 versus 16,473 (↓30%)

Active Inventory 2,652 versus 4,887 (↓46%)

Sold Units 26,438 versus 26,213 (↔)

Sold Units 6,725 versus 6,915 (↓3%)

Median Price $229,820 vs $230,000 (↔)      

Median Price $125,000 vs $133,500 (↓6%)

Average Price $280,629 vs $282,819 (↓1%)

Average Price $158,965 vs $160,186 (↓1%)

Sales Volume $7.4B versus $7.4B (↔)         

Sales Volume $1.0B versus $1.1B (↔)

Days on Market 106 versus 87 (↑22%)         

Days on Market 118 versus 93 (↑27%)

 

With the holiday season upon us, we continue to see a steady demand for housing.  At a time like this, one needs to take into consideration employment, consumer confidence, and mortgage interest rates.  Mortgage interest rates continue to remain low.  Consumer confidence continues to improve, albeit slowly.  Employment is a focus that is on everyone’s mind and definitely a conversation item on a daily basis.  A recent article in the Denver Post compared metro Denver to nine other similar sized cities in terms of their economic strength. (http://www.denverpost.com/search/ci_19415187 ).  Denver ranked #3 overall, so it looks like we are poised for more growth.  Welcome news indeed!

 

Remember, real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.

 

Advice to Sellers:

 

Today’s home buyer is looking for his or her dream.  What does this mean to you, the home seller?  Well first of all, the home buyer is looking for a home that meets 100% of the home buyer’s expectations.  The home buyer wants to move into his or her new home and have to do nothing but enjoy the home.

 

Therefore, deferred maintenance needs to be non-existent.  The usual list of maintenance items such as painting and carpeting now also include updating the entire home.  Should you consider updating the bathrooms or the kitchen?  Talk to me about a cost benefit analysis of updates.  I can advise you on how much a buyer would be willing to pay for the updates in the purchase price of the home.

 

These are a few suggestions for you, the seller, to help determine the pricing.  To learn more, give me a call.

 

Advice to Buyers:

 

The number of active listings, those homes available for sale, continues to decrease.  Caution is the theme, with caution rising along with the price point.  What does this mean to you?  Give me a call to obtain an understanding of the home market market you are interested in.

 

Manage your expectations by determining what you want in a home, what you can afford in a home, what are your lifestyle priorities, and asking if home ownership will allow you to achieve your personal goals.

 

Give me a call to talk about your Lifestyle preferences, the benefits of home ownership, and home affordability.

 

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

 

Marianne Bandy

 

Denver Relocation

 

 

Comments (2)

Tammie OBrien
Darby Inventory and Pineapple Interiors - Centennial, CO

Great post Marianne! I love your advice to home sellers in that buyers are looking for their dream home. Many sellers remain attached to their homes and are not willing to make the updates and changes necessary for it to become the buyer's dream home. A few dollars spent on minor changes can go such a long way!

I also love that you want to match buyers with their personal goals when it comes to their next home.

Nov 29, 2011 04:19 AM
Marianne Bandy
Bandy Homes - Parker, CO
CRS, GRI, Certified Negotiation Expert

Thanks for the understanding comments!

Dec 04, 2011 02:43 PM