The first and foremost stat that continues to amaze me is that we started the year in January with approximately 8,000 Single Family Homes on the market, and now we are just over 9,000 Single Family Homes! That is almost unheard of to basically see a flat line on the graph of inventory for the year. The great news is that Denver Home Buyers have been gobbling up almost all of the new inventory this year! The better news is I don’t believe we will need to worry about the dreaded “Shadow Inventory”! (Denver foreclosed homes owned by banks). I believe that will be very regional around the country, and most of the banks’ Shadow Inventory will be purchased quickly, especially by Investors! This inventory squeeze is causing home prices to rise. Median prices for single-family homes in Denver rose 9% compared to this time last year.
The prime home-selling/home-buying season is almost over, and Denver is moving into the fall shoulder season. The new normal for inventory of active listings is between 10,000 and 11,000 homes on the market. July activity is usually slower than June activity, and this July continued the tradition. For the month of July, 4,700 homes were placed on the market, and 4,618 homes sold. Denver continues to be one of the strongest home markets in the country.
Monthly Market Recap:
Single Family: Condos:
Active Inventory is 9,087 homes at month end Active Inventory is 1,740 homes
Sold homes is 3,713 Sold homes is 905
Average Days on Market is 64 Average Days on Market is 69
Median Sold Price is $259,000 Median Sold Price is $154,000
Average Sold Price is $312,920 Average Sold Price is $190,269
July Year-to-Date Market Recap (2012 versus 2011):
(See graphs at end of article)
Single Family: Condos:
Active Inventory 9,087 versus 14,014 (↓35%) Active Inventory 1,740 versus 3,569 (↓51%)
Sold Units 21,341 versus 18,169 (↑17%) Sold Units 5,137 versus 4,501 (↑14%)
Median Price $249,000 vs $228,500 (↑9%) Median Price $137,500 vs $122,165 (↑13%)
Average Price $300,658 vs $281,597 (↑7%) Average Price $174,229 vs $156,921(↑11%)
Sales Volume $6.4B versus $5.1B (↑25%) Sales Volume $895M versus $706M (↑27%)
Days on Market 84 versus 109 (↓23%) Days on Market 86 versus 121 (↓29%)
July Market Facts:
Days on market is down because 55% of the listings went under contract in 30 days or less.
The most frequently used forms of financing are Conventional, FHA, and CASH.
CASH is the number two form of financing for Condos.
Rents continue to rise, rental unit availability is low, and home affordability remains high.
Absorption rate is 3.2 months supply for Single Family and 2.4 months for Condos.
Remember - real estate is always local. While the above is a representation of the metro Denver market as a whole, please contact me to better understand your specific real estate market.
Advice to Denver Home Sellers:
Buyers are looking at homes multiple times. The first time is either as a drive by or via the Internet. In both cases, the home has to be memorable so it will be considered in the short list of homes from which a showing will be requested. What does memorable mean? Something in the home or about the home needs to create a positive first and lasting impression.
With that being said, seller should take an objective look at their home. From the curb, at the front door, inside the home, at the back door, looking out into the back yard; what is memorable about your home? Now accentuate that memorable quality.
Should you de-clutter, do some remodeling, or take care of the deferred maintenance on your home? These are great questions to discuss with me. Give me a call, and I will be glad to take a look at your home and discuss your options.
Sellers can improve their chances of getting a house sold by sprucing up inside and out such that the home will create that lasting first impression.
Is it a good time for your home to be on the market? As Real Estate is local, contact me to discuss the options available to sell your home during the 2012 home-selling season. There are still lots of buyers out there looking for good homes.
Advice to Denver Home Buyers:
Be Prepared is the advice of the day. If you find the home of your dreams, act now. 55% of homes went from an active (on the market) status to under contract status in 30 days or less in the month of July. The best-looking and best-valued homes go fast!
Here is a list of things to consider when preparing for homeownership: decide what you can afford, develop your home wish list, select where you want to live, start saving, get your credit in order, determine your mortgage qualifications, get preapproved, weigh the sources of your down payment, and calculate the costs of homeownership.
The home is the emotional center of our lives, and it remains a critical component of who we are.
Want to learn what BE PREPARED means? CALL ME TODAY!
Take advantage of this buying opportunity! Let the professionals at the Bandy Team help you buy or sell your 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 Centennial, including homes in Greenwood Village and real estate in Larkspur.
Until next time,