The Market is Shifting
Buyers are coming out of the woodwork looking for homes, but not finding much to choose from, especially in the under $300,000 price range. We are counseling buyers in this price range to be ready to jump quickly on any house that comes on the market that meets their criteria. That means being pre-approved for a loan, have earnest money ready, and being ready to make a quick decision. This price range is no longer a buyers’ market; it is a sellers’ market, with many properties getting multiple offers within days of being placed on the market. And the closer your offer is to list price, the better your odds of getting the property. For buyers who want to “sleep on it” before making a decision, they most likely will not “sleep in it”.
Based on available inventory and sales levels, we have a 1.7 month supply of single family homes and a 2.4 month supply of condos. No wonder there is a bidding war for many homes in this price range! See this link for more information: Denver real estate market is 2nd fastest selling in the nation
Market Metrics:
March was the month of “UP” in the Denver home market. While the inventory of homes for sale remained relatively stable, everything else was “UP” and the strength of the Denver home market continues to show its recovery. All indications are that this will be a strong year for the Denver real estate market. We are only weeks away from the start of the prime home selling/buying season.
Monthly Market Recap:
|
Single Family: |
Condos: |
|
Active Inventory is 8,303 units at month end |
Active Inventory is 2,022 units at month end |
|
Sold units is 2,775 |
Sold units is 700 |
|
Average Days on Market is 105 |
Average Days on Market is 97 |
|
Median Sold Price is $232,500 |
Median Sold Price is $125,500 |
|
Average Sold Price is $284,035 |
Average Sold Price is $161,848 |
March Year-to-Date Market Recap (2012 versus 2011):
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Single Family: |
Condos: |
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Active Inventory 8,303 versus 13,712 (↓39%) |
Active Inventory 2,022 versus 3,995 (↓49%) |
|
Sold Units 6,746 versus 6,021 (↑12%) |
Sold Units 1,694 versus 1,573 (↑8%) |
|
Median Price $225,000 vs $220,000 (↑2%) |
Median Price $120,000 vs $121,905 (↓2%) |
|
Average Price $276,702 vs $272,507 (↑2%) |
Average Price $157,324 vs $155,946 (↑1%) |
|
Sales Volume $1.9B versus $1.6B (↑14%) |
Sales Volume $267M versus $245M (↑8%) |
|
Days on Market 105 versus 120 (↓13%) |
Days on Market 101 versus 129 (↓22%) |
MARCH, 2012 YTD HOME TRENDS:
The top four price ranges for sold Single Family homes are: (1) $200,000 to $299,999, (2) $300,000 to $499,999, (3) $150,000 to $199,999, and (4) $110,000 to $149,999.
The top three methods of financing a home purchase are: (1) Conventional financing, (2) FHA financing, and (3) Cash.
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:
The Denver home market is weeks away from the prime home selling/buying time of the year. Is it time to take advantage of this prime home selling season to sell your home?
Establish your expectations as to home pricing, deferred maintenance needs, and the average amount of time required before your home can be sold. More and more prospective buyers rate Lifestyle as their top priority. With that being said, the typical prospective buyer is looking for a home that has everything they want and are not interested in doing renovation/home improvement after the purchase.
Sellers can improve their chances of getting a house sold by sprucing up the house inside and out, which will create that lasting, positive first impression.
Is it a good time for your home to be on the market? As Real Estate is always local, contact me to discuss the options available to sell your home during 2012.
Advice to Buyers:
One may ask “Does buying a home really make better sense than renting?” While the answer is personal, one should take into consideration the top four non-financial reasons people buy a home. Buyers want:
- a place to raise and educate their children
- a place where their family will feel safe
- to have plenty of living space
- to have control over the space.
Home affordability has never been better.
If you’re in the market to purchase a home, here is a list of things to consider when preparing for homeownership:
- decide what you can afford
- develop your home wish list
- select where you want to live
- start saving, get your credit in order
- determine your mortgage qualifications
- get preapproved
- weigh the sources of your down payment
- calculate and budget for the costs of homeownership.
Want to learn more? CALL ME TODAY!
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 Cherry Creek, town homes in Lowry, and real estate in Stapleton. You may also be interested in horse property in Elizabeth or Parker horse property, and a variety of Parker golf course homes in Canterberry.
Marianne Bandy
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