Overview
The theme for our latest update for February continues to be Inventory! It’s hard to believe that our Single Family Homes Inventory is down another 30% from last year and 60% from 2011 at this time! It’s encouraging to see average prices continue to firm up and increase. These trends are making it more attractive for many Home Sellers to list their home now, and avoid more competition later in the customary home selling season of late spring and early summer.
Market Metrics:
By the numbers, the inventory of available homes for sale is 7,094 homes at January month end, 4,383 homes came onto the market, 4,431 homes were placed under contract, and 2,953 homes closed for a closed dollar volume of $811 Million. For all appearance purposes, the Denver home market continues to show its strength as new records were set this month.
Monthly Market Recap: (See Market Trends graphs at end of this article)
Single Family: Condos:
Active Inventory is 5,834 homes at month end Active Inventory is 1,260 homes
Sold homes is 2,343 Sold homes is 610
Average Days on Market is 80 Average Days on Market is 70
Median Sold Price is $250,000 Median Sold Price is $140,050
Average Sold Price is $301,827 Average Sold Price is $170,769
January Year-to-Date Market Recap (2013 versus 2012):
Single Family: Condos:
Active Inventory 5,834 versus 8,356 (↓30%) Active Inventory 1,260 versus 2,087 (↓40%)
Sold Units 2,343 versus 1,993 (↑18%) Sold Units 610 versus 477 (↑28%)
Median Price $250,000 vs $218,855 (↑14%) Median Price $140,050 vs $113,000 (↑24%)
Average Price $301,827 vs $272,328 (↑11%) Average Price $170,769 vs $146,544(↑17%)
Sales Volume $707M versus $543M (↑30%) Sales Volume $104M versus $70M (↑49%)
Days on Market 80 versus 103 (↓22%) Days on Market 70 versus 108 (↓35%)
January Market Facts:
At January month end, the inventory of homes available on the market @ 7,094 homes reached a new low since January, 1990. With this in mind, the Month’s Supply of Inventory is 1.87 months for Single Family and 1.63 months for Condos. Month’s Supply of Inventory is calculated by taking the last twelve months homes sold numbers and calculating an average. This number is then divided into the month end inventory to produce the Month’s Supply of Inventory.
Remember, real estate is local. While the above is a representation of the Denver homes market as a whole, please contact me to better understand your specific local market.
Advice to Sellers:
The first impression counts mightily in the eyes of the buyer. Curb appeal is required in order to attract buyers. Consider exterior improvement projects that will win the buyer’s eye and provide you the seller with a greater return on your investment.
When looking at home improvement projects that will help you to sell your home, the following is a list of the top projects that provide a greater return on investment: replacement steel entry door, garage door replacement, kitchen remodel (either minor or major), basement remodel, and roofing replacement. Home improvements can also help to sell the home faster.
Women are a big part of the housing market and a recent survey indicates that women want big closets, a great kitchen, a great location, a comfortable place in the home for socializing, low maintenance, and at least a two car garage.
Buyer demand continues and the inventory of homes available for sale is at an all time low. While this can be portrayed as a “seller’s market”, each and every home is unique which suggests professional assistance is still a big advantage in selling the home quickly and for the highest price.
Call me to discuss the options available to you in marketing your home.
Advice to Buyers:
It has been said before and it needs to be said again, be prepared to act quickly. The inventory of available homes is the lowest it has been since 1990 and buyer demand remains strong and constant. With rising prices, buyers continue to have to adjust their sights on prospective properties and be prepared for a possible bidding war. We can help with pricing strategies before you make an offer.
Determine what you want and your priorities. Run the numbers and put together a financial plan. Mortgage interest rates remain low; but loan qualification requirements remain tight. Talk to a mortgage loan originator to learn what you can qualify for. We have several trusted lending partners we can refer to you. Determine where you want to live, your lifestyle preferences, and your home preferences. Be an informed buyer.
Call me to discuss your lifestyle preferences, the benefits of home ownership, homes available for sale, buying a home in 2013, and home affordability.
Are you ready to buy or sell a home in Denver? The Bandy Team is here for all your real estate needs. We’re more than happy to answer any questions you may have about the metro Denver area. We would be delighted to show you some outstanding homes in Highlands Ranch, properties in Englewood, or real estate in Lowry.
Until Next Time,
Marianne Bandy
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"
303-746-7799 cell
www.BandyHomes.com
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