So, How's the Denver Real Estate Market? October, 2010

By
Real Estate Agent with Bandy Homes

 

 

The Sky Is Not Falling, and Real Estate is Still a Good Investment”

The Bandy Team presents seven thoughts to consider why Denver real estate is still a good investment.

Contact us for a detailed analysis of your home.

#1: September 2010 Sold Data for Single Family and Condos is 1% higher than August 2010.

  • 2,958 units sold in September, versus 2,936 in August when typically we would see a historical decline of 2%.
  • 532 condos sold between zero and $250,000 in September, a 9% increase over August.
  • Overall, the number of condos sold in September increased 12.7% over August
  • In the luxury market, four single family homes closed over $3,000,000 in September, equaling the highest number of properties to be sold in a month at this price point.


#2: Total Single Family and Condo Properties that are Under Contract rose 1.2% in September over August

  • Properties that are under contract are the pipeline to future closings, and there is a strong two-month supply of closings in the pipeline.
  • The number of single family properties priced between zero and $250,000 has 2,616 homes under contract, up from 2,507 in August.
  • Luxury homes priced between $2 million and $2.5 million had a total of six properties placed under contract versus three in August.

#3: Active Listing Inventory is seasonally decreasing, which is a good sign for current homeowners who are selling.

  • Inventory for Single Family and Condos decreased by 3.4% in September, from August 2010.
  • Luxury properties priced above $1 million had an inventory decrease of 4.5%.
  • The entire Denver marketplace has a 7.8 month supply of single family homes.
  • The entry price point up to $250,000 has a 5.9 month supply of homes.

#4: Interest Rates are at historical lows

  • 30 Year fixed rates are at 40-year lows
  • 15-year mortgages help you build equity faster
  • A 4.25% interest rate gives more buying power, to keep low monthly payments.

#5: Economic conditions are creating a new housing market for 2011.

  • The lack of new homes being built will help resale prices in 2011
  • The job market is stabilizing, allowing people the confidence to buy.
  • Financing a new loan requires solid income and good credit, but money is available at all price points, which wasn’t the case earlier in 2010.

#6: Lack of equity in markets is now reversing the trend

  • Both financial and housing markets are seeing equity starting to increase in individual portfolios. Hence, people are saving money in 2010 that will be spent in 2011.
  • There are over 100 homes per day selling in Denver as of October 8, 2010. Smart buyers are building wealth by purchasing now and getting an attractive equity position in their home.
  • The Luxury Housing Market has an oversupply of homes above $1 million and buyers are able to capitalize on these attractive prices today. Buyers are buying at below building costs and this window will be smaller in 2011.

#7: Buyer behavior for housing will be more positive in 2011.

  • As interest rates start to rise after the first of the year, buyers will jump on the low prices and low rates.
  • Buyers will take shorter time buying because as rates rise, their buying windows change.
  • Buyers are going to require more information about resale home conditions. Keep good records for your housing improvements.

What should sellers do in today’s market?

  • Put your home in “show home” condition.
  • Position your price aggressively against the competition.
  • Consider offering unique and attractive financing terms.

What should buyers do in today’s market?

  • Know the supply and demand of the neighborhood you are making the purchase within. This helps your negotiations.
  • Ask for HOA dues to be prepaid for a period of time as part of the negotiations.
  • Work with a talented lender that understands today’s underwriting guidelines to make sure you can perform on the contract you enter.

All real estate data taken from Metrolist Inc., on October 8, 2010 Denver, Colorado.

Marianne Bandy
The Bandy Team

RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"

303-746-7799
1-888-740-5850 x-400

http://www.BandyHomes.com
http://www.DenverAvoidForeclosure.com

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Colorado Denver County
Groups:
Realtors®
Colorado Realty Bloggers
The Ninety-ninth Percentile
Colorado Real Estate
Tags:
denver real estate
denver real estate market
denver home buyer
denver home buying
denver home selling

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
30,666
Danell Estrada
Highlands Ranch Appraisals, LLC - Highlands Ranch, CO

 

jpgMarianne there is lots of good information here and you show how knowledgeable you are in the Denver market. Now I know I could have found this information on Metrolist. So Thank You. I will keep you in mind if any homeowners I meet on the job or friends are looking for a Realtor or a Certified Short Sale Expert. Wish You Well!

Oct 22, 2010 05:48 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
485,438

Marianne Bandy

CRS, GRI, Certified Negotiation Expert
Ask me a question
*
*
*
*
Spam prevention

Additional Information