METRO DENVER REAL ESTATE MARKET UPDATE - FEBRUARY 2012

By
Real Estate Agent with Bandy Homes

 

Are We Witnessing the Bottom of the Denver Real Estate Market?

 

Wow, we are seeing some definite momentum to begin this new year of 2012!  Typically January’s activity is lower than December as far as numbers of closings go. But this January’s closings compared with January 2011 showed an increase of 16%!  The big story continues to be the lack of inventory, and buyers are still being picky on their selections.

  • Interest Rates are still at historically low levels and will be through the first half of 2012.
  • Prices for single family homes priced below $250,000 have risen  4.7% in 12 months.
  • Foreclosure filings and foreclose sales are decreasing over previous years, meaning the prices of homes are stabilizing in Denver.
  • Six month’s supply or below of inventory promotes more aggressive buyers buying homes which increases the prices.

 Denver Unsold Homes 2/2012

 

Market Metrics:

 

At January month end, the inventory of active listings, those homes for sale, represented 3.3 months of supply of homes on the market.  Home showings increased dramatically and offers were extended as a result of the pent-up buyer demand. 

 

Monthly Market Recap:

 

Single Family:

Condos:

Active Inventory is 8,356 units at month end

Active Inventory is 2,087 units at month end

Sold units is 1,993

Sold units is 477

Average Days on Market is 103

Average Days on Market is 108

Median Sold Price is $218,855

Median Sold Price is $113,000

Average Sold Price is $272,328

Average Sold Price is $146,544

 

 

January Year-to-Date Market Recap (2012 versus 2011):

 

Single Family:                                            

Condos:

Active Inventory 8,356 versus 13,714 (↓39%)

Active Inventory 2,087 versus 4,176 (↓50%)

Sold Units 1,993 versus 1,724 (↑16%)    

Sold Units 477 versus 432 (↑10%)

Median Price $218,855 vs $225,000 (↓3%)           

Median Price $113,000 vs $124,995 (↓10%)

Average Price $272,328 vs $277,922 (↓2%)          

Average Price $146,544 vs $150,085 (↓2%)

Sales Volume $542M versus $479M (↑13%)           

Sales Volume $69M versus $64M (↑8%)

Days on Market 103 versus 120 (↓14%) 

Days on Market 108 versus 123 (↓12%)

 

December 2011 YTD County Sold Data:

 

The top five metropolitan counties based upon closed homes in 2011 are: (1) Denver County, (2) Arapahoe County, (3) Jefferson County, (4) Adams County, and (5) Douglas County.

 

The top four price ranges for sold homes based on closed transactions are: (1) $100,000 to $199,999, (2) $200,000 to $299,999, (3) $300,000 to $499,999, and (4) $0 to $99,999.

 

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 real estate market.

 

 Denver Median Sales Price - 2/2012

 

Advice to Sellers:

 

The inventory of Active Listings (those homes for sale) continues to decrease.  Historically, this would indicate a seller’s market.  This is not the case currently, because prospective buyers have wants and needs that they will not compromise on.  So what is a seller to do?

 

Overall, buyers have big dreams for their new home.  Buyers are looking for style upgrades on counter tops, flooring, faucets, and fixtures.  The utility look that started several years ago in kitchens is now spreading to the entire home.  Big on the wish list are separate laundry rooms, spacious built-ins, and a place to maximize storage.

 

In two words the seller must de-clutter and stage their home.  Make sure each room has a focal point.  Here are 4 quick tips for prepping a home: (1) super clean, (2) clear the clutter and unload some furniture, (3) prep your landscaping, and (4) add new touches.

 

Is it a good time for your home to be on the market?  With inventory this low, smart sellers are listing now to take advantage of buyer demand and also avoid more competition later. Contact me today to discuss the options available to sell your home during 2012.

 

Advice to Buyers:

Overall, 2012 will bring compelling reasons to buy real estate in Denver.

Interest rates are projected to remain low through the first 9 months of the year, especially in an election year.

With the number of active listings continuing to be the lowest it has been in years, a prospective buyer must prioritize one’s needs and wants and look at what is now available in the market. 

 

Monthly rents continue to rise in the Denver market and home prices continue to stabilize.

The Colorado Division of Housing recently reported that the metro area had only a 5.4% vacancy rate and that the median rent was now $870.  Vacancy rates have moved down and the area’s median rent has risen for the last eight quarters!  Home affordability has never been higher in the Denver metro area.

 

Call me today about your Lifestyle preferences, the benefits of home ownership, and home affordability.

 

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 home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

 

Marianne Bandy

 

Denver Relocation

 

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®
RE/MAX Active Rain Bloggers
Colorado Realty Bloggers
The Ninety-ninth Percentile
Colorado Real Estate
Tags:
denver real estate
denver market report
denver home buying
bandy homes
denver home selling
bob bandy

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

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