DENVER REAL ESTATE MARKET UPDATE - SEPTEMBER 2011

By
Real Estate Agent with Bandy Homes

 

Market Metrics:

 

June was the first month in 2011 where closings exceeded $1.0 Billion, followed by July, and now in August, 3,973 homes closed at an average price of $260,821 which resulted in $1.0 Billion in sales volume for the month.  Wow, three months in a row with over $1.0 Billion in closings.  In spite of the national media, the real estate market is still quite active in Denver!

 

Monthly Market Recap:

 

Single Family:                                                                 Condos:

Active Inventory is 13,436 units at month end           Active Inventory is 3,195 units at month end

Sold units is 3,177                                                            Sold units is 796

Average Days on Market is 96                                      Average Days on Market is 111

Median Sold Price is $235,000                                        Median Sold Price is $130,000

Average Sold Price is $284,065                                      Average Sold Price is $168,050

 

 

 

Denver Monthly Avg Sales Price

 

August Year-to-Date Market Recap (2011 versus 2010):

 

Single Family:                                                                  Condos:

Active Inventory 13,436 versus 17,837 (↓25%)           Active Inventory 3,195 versus 5,309 (↓40%)

Sold Units 21,346 versus 21,612 (↓1%)                         Sold Units 5,297 versus 5,716 (↓7%)

Median Price $229,950 vs $230,019 (↔)                        Median Price $124,000 vs $134,950 (↓8%)

Average Price $281,964 vs $281,599 (↔)                      Average Price $158,593 vs $160,878 (↓1%)

Sales Volume $6.0B versus $6.1B (↓1%)                       Sales Volume $0.8B versus $0.9B (↓9%)

Days on Market 107 versus 84 (↑27%)                         Days on Market 119 versus 89 (↑34%)

 

As you can see above, inventory of single family homes is down sharply from a year ago, about 25% lower.  But sales are only down 1% and prices are holding steady.  This, along with the fact that new construction home starts are at about 10% of a normal year, means we are heading for a housing shortage.  This is occurring now for homes priced less than $300,000, and the price point is moving up. As we all know, when supply decreases and demand stays the same, prices have only one way to go!

 

 

Denver Monthly Closed Units

 

August historically marks the end of the prime home selling and home buying market for the Metropolitan Denver area.  What can one expect for the remaining months of 2011?  The Active Inventory count in units will continue to decrease as well as the monthly number of both under contract and closed transactions.  This does not mean that the market has gone away or will go away; but, rather that the market continues in a seasonally adjusted basis.

 

Remember - Real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific local real estate market.

 

 

Denver Month End Inventory of Unsold Homes

 

Advice to Sellers:

 

With the market seasonally adjusting for the remainder of the year, help the prospective buyer to visualize the value, comfort, and joy of living in your home.  Don’t slack off on home maintenance, spruce up those areas that need attention, make sure that the curb appeal is maximized by maintaining the lawn and shrubbery. Consider removing personalized wallpaper and borders, paint where needed, and if the home is vacant, consider staging the home.  Use the natural senses to attract, make everything is clean, neat, and inviting, have soft music playing for showings, eliminate harsh smells, pull back curtains, open the windows and let fresh air in, and clean the windows.

 

These are a few suggestions for you the seller.  To learn more of what you can do, give me a call.

 

 

Advice to Buyers:

 

Home affordability is at near record levels.  What does this mean?  In summary, the cost of home ownership remains low when one takes into consideration the savings of monthly mortgage payments versus paying rent, the tax breaks of home ownership, building equity in your home, and the feeling of security that comes with home ownership.

 

Let’s review the 7 steps to take before you buy a home.  The steps are:

  1. decide how much you can afford,
  2. develop your home wish list,
  3. select where you want to live,
  4. start saving,
  5. ask about all the costs before you sign,
  6. get your credit in order,
  7. get prequalified. 

Additionally, know how much financing you qualify for, research your priorities, establish a wants list, and establish a needs list.  Pay attention to only the local market as real estate is local.  For you the buyer, your local real estate market can be a single home, a block of homes, or a subdivision.  This is the market that is important to you.

 

Lifestyle continues to rate number one in the minds of buyers.  Establish your personal expectations of home ownership benefits and costs.

 

Give me a call to discuss your Lifestyle preferences, the benefits of home ownership, and home affordability.

 

Denver Closed Propertis

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a Denver home, we can show you some terrific property in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in acreage property in Franktown or real estate in Parker, including a wide variety of homes in Canterberry and property in Stonegate.


 

Marianne Bandy

Relocate to Denver

 

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Marianne Bandy

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