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METRO DENVER REAL ESTATE MARKET UPDATE SEPTEMBER 2013

By Marianne Bandy

Real Estate Agent with Bandy Homes

September 29, 2013 11:33 PM

Overview:

As the so called “Buying Season” comes to an end, there are a couple of things to pay attention to. First, the graphs show a definite trend line for Inventory and Months of Inventory going up, and the number of Under Contracts and Closings going down! Keep in mind, we almost always get a second wind to the market in the Fall “Buying Season”!

Market Metrics:

By the numbers, the inventory of available homes for sale is 10,587 homes at August month end, 6,752 homes came onto the market, 6,353 homes were placed under contract, and 5,635 homes closed for a closed dollar volume of $1.76 Billion. The fall season is upon us and the Denver home market continues to show its velocity and strength. Year over year price comparisons are up.

Monthly Market Recap:

Single Family: Condos: Active Inventory is 8,787 homes at month end Active Inventory is 1,800 homes

Sold homes is 4,386 Sold homes is 1,249

Average Days on Market is 40 Average Days on Market is 37

Median Sold Price is $287,000 Median Sold Price is $166,630

Average Sold Price is $345,487 Average Sold Price is $196,292

August Year-to-Date Market Recap (2013 versus 2012):

Single Family: Condos:

Active Inventory 8,787 versus 9,060 (↓3%) Active Inventory 1,800 versus 1,766 (↑2%)

Sold Units 30,213 versus 25,071 (↑21%) Sold Units 7,724 versus 6,092 (↑27%)

Median Price $278,000 vs $250,000 (↑11%) Median Price $160,000 vs $138,900 (↑15%)

Average Price $333,769 vs $302,329 (↑10%) Average Price $194,425 vs $175,660(↑11%)

Sales Volume $10.0B versus $7.6B (↑33%) Sales Volume $1.5B versus $1.1B (↑40%)

Days on Market 53 versus 81 (↓35%) Days on Market 49 versus 83 (↓41%)

Market Facts:

Quality of life and home affordability remain high in the Denver home market.

Consumer confidence increased slightly in August to 81.5 up from 81 in July.

Overall, the Denver home market has a two month supply of homes available for sale at the current sales rate. Single Family Residential homes have a 2.49 month supply and Condos have a 2.01 month supply.

Advice to Sellers:

Knowing that today’s home buyers are independent and well informed, how does a seller create and maintain buyer interest in the seller’s home? A seller must equalize the focus on upgrades. With that being said, the seller must keep in mind the fact that both inside and outside daily living and presenting a home for sale are two very different experiences. We are all bound by our habits. However, a buyer sees a home for the first time with fresh eyes as a visitor.

Here are some questions that the seller must ask himself or herself. What story does your home tell a visitor right now? When you drive up to your home, what do you see? How easy is parking and entrance to your home? What is scattered around your home on any given day? Is your home nicely and adequately lit at night?

Will your home create that lasting impression? Are you current on the preventative maintenance items needed for your home? Have you de-cluttered your home? To maximize the selling price, have you done recent upgrades both inside and outside of the home?

While the Denver home market continues to be portrayed as a “seller’s market”, each and every home is unique which suggests professional assistance in selling the home. Rember Real Estate is local. Contact me to discuss the options available to you.

Advice to Buyers:

Keep your emotions in check to avoid common buyer mistakes such as allowing love at first sight to cloud your judgment, overpaying for perfection, and always looking for a better deal. The purchase of the “American Dream” home is a life event that should be thoroughly researched and thought out.

Know what you want in a home, where you want to live, and what price range you can afford. Complete the pre-qualification process with a reputable lender so you know the price range that you qualify for when you are purchasing a home. Be prepared and manage your expectations.

Contact me to discuss your Lifestyle preferences, the benefits of home ownership, homes available for sale, buying a home in 2013, and home affordability.