Across the country home sellers are waiting it out. Waiting for prices to go up, waiting for buyers, waiting for what ever
is going to happen to make their home sell.
This month's Forbes.com features in the the top Ten Best Suburbs to Sell that even the best of markets are not finding homes flying off the market. Most areas are experiencing 3 months and more before finding a buyer.
In Denver we have noticed segments of the market are doing well, actually very well.
In fact, last week in Denver Metrolist reported 87 closings of homes priced under $200,000. Of those 87 sales, 45 (over half) were sold in less than 30 days.
Excuse me folks, but that is NOT a buyer's market, that is a Seller's market.
Who's buying?
Investors and first timers both have the money and the desire to seek out the deals. Investors are paying cash and first timers are using FHA and other Convention loan programs to finance these home.
Where are they buying?
| Area |
Units Closed |
List Price |
Sold Price |
| SW Denver |
40 |
$31,000 |
$32,400 |
| SE Denver |
9 |
$52,020 |
$49,000 |
| NW Denver |
6 |
$119,000 |
$100,000 |
| NE Denver |
32 |
$52,900 |
$65,111 |
| Total |
87 |
11-14 thru |
11-24-2008 |
Just for grins, I've noted the lowest list price of the homes sold in each of the areas last week. The entry level prices are surprising even to me.
Note the List vs Sold Price...in three instances the sale price is HIGHER than the list price. This is further evidence homes in this price range are experiencing multiple offers. NW Denver had the one instance where the property sold for significantly less then the list price.
These numbers show us not only is the market moving in the lower end, there's competition. Activity is good, eventually this is going to trickle upwards into the higher price ranges.
What are the Financing Terms?
| Cash |
40 units sold |
| FHA |
23 units sold |
| Conventional |
21 units sold |
| VA |
2 units sold |
| Owner carry |
1 unit sold |
Cash is king! Considering the state of the stock market these days, investors appear to be turning to real estate. The reality is, your money is better off owning real estate, particularly now as prices are low than risking the roller coaster ride of Wall Street.
A few years ago we were hard pressed to find homes for buyers priced under $200,000, now we are finding many of them. No, they aren't brand new homes, for the most part they are modest homes on a city lot that need work. Investors are putting fix-up funds into the properties and will soon be selling them at a profit.
It's no wonder the prices are getting bid up. Everyone wants in on the action!
If you are a qualified buyer and would like to search out a bargain (before they are gone) give me a call.
,
;)
;)
It is nice to have confirmation that the rumors I had been hearing are true! I hope it moves on up to the mountains. We hit the slump late, so I am guessing we will recover late too. It is good news to hear that you all are doing better down there! Thanks for the update Kristal!