My broker Larry McGee made a TV appearance on Denver's Channel 7. He was asked and answered the following questions regarding our Denver Real Estate Market.
1. How much property is available to buy in the Metro Denver real estate market?
According to information released by Metrolist on Tuesday of this week, there are 18,685 residential properties for sale in the Metro Denver area. Of those 4,246 are condos, which includes lofts and other attached dwellings, and 14,439 are single family detached houses. The current inventory is 7% less than at the same time in 2009, and 3% less than last year at this time. Fewer inventories means the overall Metro Denver market should show some increase in average price during 2011.
2. How much of the available inventory is “distressed”, meaning short sale or bank owned?
Metrolist has categories to define and locate distressed property. Approximately 4000 are currently defined as distressed. Many buyers do not want the hassle of attempting to buy a “short sale”, or assume the physical condition risks associated with buying a foreclosed property, so for those buyers, the available inventory is closer to 14,500 properties.
3. The average price for Metro Denver homes fell almost $5,000 from the same time last year. Should consumers be concerned that the market may still decline?
No. Remember, at this time last year, the $8,000 tax credit provided a powerful, short term incentive to buy a home. Many of those consumers that were planning on buying a home during 2010 and the first half of 2011 made every effort to take advantage of that $8,000 incentive, creating a short term upward spike in the average price. Analysis of the data released this week from Metrolist shows an average price increase of 11% since January 2009, arguably the worst two years for the housing market since the late 1980’s, beating inflation for the same period by 6.5%. The housing market is continuing a slow, long term recovery.