Denver Absorption Rate Favors the Seller!

By
Real Estate Agent with The Berkshire Group Realtors
Denver Absorption Rate April 2012 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.
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Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!
Hi kk, the Denver market is turning bug time. We are seeing multiple offers on our listings. It is such a nice change
May 29, 2012 03:32 AM #1
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Kristal Kraft
The Berkshire Group Realtors - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Brenda, I so agree! The seller's have taken a back seat long enough! 

kk

May 29, 2012 04:18 AM #2
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Kristal

The Denver real estate market has turned the corner and is heading in the right direction.

Good luck and success.

Lou Ludwig

May 29, 2012 08:09 AM #3
Rainmaker
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Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

We are seeing the same thing here in Silver Spring, Maryland especially homes that are "inside the beltway".  This is the best  advice I've seen for buyers in this market in a long time.

Jul 11, 2012 03:02 PM #4
Rainer
196,779
Lori & Scott Mitchell
Slifer Smith & Frampton Real Estate - Breckenridge Colorado Luxury Homes - Breckenridge, CO
Breckenridge Colorado Real Estate

Great post Kristal thank you for sharing. The market in Denver and CO seem to be turning around and it is a great thing to see. Really nice helpful tips. 

Dec 06, 2012 04:47 AM #5
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Kristal Kraft

Selling Metro Denver Real Estate - 303-589-2022
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