If you are a home buyer in the Denver Metro area, you may be wondering why it is so hard to find a home to purchase. Or perhaps you are a home buyer who has made offer after ofter only to be outbid by others who want the same property as you do.
The chart above shows the Denver Real Estate Market Absorption Rate for the past 5 years. Absorption rate is a way to measure the length of time it takes to sell a home, based on the current rate of sales. This measurement does not include any new homes coming on the market. It is a form a measurement that REALTORS use to estimate how long it will take to sell a home.
April 2012 is represented in yellow, as you can note it is hardly visible on the above graph. Previous years and months dwarf last month! For the record April 2012 has an absorption rate of 12.44 weeks!
That means if we keep selling homes at the current rate there will be no more left in 3 months!
OK this form of measurement is by no means exact, but it does tell a story.
These Denver Real Estate Statistics tell us:
Competition is tough!
We are now in a SELLER's Market (over 6 months is considered a BUYER's market)
Homeowners wanting to sell can expect many showings and frequently multiple offers
What should a home buyer do?
Begin your home search prepared. Be PRE-APPROVED
He who snoozes loses. If you have to sleep on it someone else will be sleeping in it (not you!)
Do your homework. If you are competing don't play "let's make a deal"
What should a home owner do?
If you have been waiting to sell, your time may be now
Package your home to sell. Fix the items on the Honey Do List. Buyers still want a home in good condition.
Leave during showings. Visit the library, take a walk let the buyers "mentally move into your home".
Remember real estate is local. National news has little if any effect on our neighborhoods. For the most part Denver doesn't follow national trends. Thank goodness for that! When the rest of the country had an Appreciation Party we weren't invited. Since we didn't go to the party we didn't end up with the "hang-over!"
Our values are and will get better. We are watching it now.