Westminster CO: Home Farm Monthly Market Minute October 2012
The Real Estate market in Home Farm has been holding fairly steady over the past few years. While home values did see a drop, Home Farm has not seen a great amount of short sale and bank owned properties in comparison to much of the Denver Metro area. This is why it is said that "all Real Estate is local" - one neighborhood can have a substantially different market from another even though they are only separated by a short distance.
- The turnover rate for the past 12 months in Home Farm has been 8%. This represents the number of sold homes as compared to the number of total homes in the area. There were 24 sold homes over the past 12 months.
- There are 2 Months of Inventory. This is the amount of time that it would take for every home that is currently available in Home Farm to sell. 2 months is a very low MOI, and is usually indicative of a Sellers' Market, with 6 months being a balanced market. As Months of Inventory increase to 8 and above, it is an indicator of a Buyers' Market.
- Average Sold Price per Square Foot in Home Farm is $149. This is slightly higher than we saw in the 2Q, when the average sold price per square foot was $148.
- Average Days on Market was 60. This is the time that it takes from the day a home is actively listed until a signed contract is received and it is officially "under contract". The home will usually close 30 to 60 days after going under contract.
The cyclical nature of real estate is evident in the charts below. There are always going to be anomalies, as in the case of a short sale taking much longer than a "normal" sale, but I thought it would be interesting to graphically demonstrate the steady nature of the Home Farm real estate market.
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