The Market continues to take us into territory we have not seen in decades, and some cases ever! Here is the latest data on the Metro Denver Real Estate Market through August 2012! You will notice that the graphs (shown at bottom) have begun their fairly straight line as the Spring and Summer volume has cleared and we are settling into the Fall Market! Most notably, Listing Inventory is down approximately 33%, with Under Contracts up 24% and Sold/Closed Volume up 17%, all compared to one year ago. These factors have converged to cause Single Family Denver median home prices to go up 9% and condo/townhome prices up 12%. Prices have increased in 6 of the last 7 months!
The inventory of available homes for sale was 10,826 homes at month end, 5,196 homes were placed under contract, and 4,685 homes closed for a closed dollar volume of $1.3 Billion. The peak Denver home selling/home buying season is over and now the market adjusts to the Fall season. Traditionally, this means fewer transactions, but there’s still a lot of activity.
Monthly Market Recap:
Single Family: Condos:
Active Inventory is 9,060 homes at month end Active Inventory is 1,766 homes
Sold homes is 3,730 Sold homes is 955
Average Days on Market is 63 Average Days on Market is 69
Median Sold Price is $262,000 Median Sold Price is $148,950
Average Sold Price is $311,893 Average Sold Price is $183,359
August Year-to-Date Market Recap (2012 versus 2011):
Single Family: Condos:
Active Inventory 9,060 versus 13,436 (↓33%) Active Inventory 1,766 versus 3,195 (↓45%)
Sold Units 25,071 versus 21,346 (↑17%) Sold Units 6,092 versus 5,297 (↑15%)
Median Price $250,000 vs $229,950 (↑9%) Median Price $138,900 vs $124,000 (↑12%)
Average Price $302,329 vs $281,964 (↑7%) Average Price $175,660 vs $158,593(↑11%)
Sales Volume $7.6B versus $6.0B (↑26%) Sales Volume $1.0B versus $840M (↑27%)
Days on Market 81 versus 107 (↓24%) Days on Market 83 versus 119 (↓30%)
August Market Facts:
Days on market is down because 52% of the listings went under contract in 30 days or less.
The most frequently used forms of financing, in order, 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. (A great time to buy rental property in Denver!)
Absorption ratio is 3.1 months for Single Family inventory and 2.4 months for Condos.
Real estate is local. While the above is a representation of the Denver housing market as a whole, please contact me to better understand your specific real estate market.
Advice to Denver Home Sellers:
With the market seasonally adjusting for the remainder of the year, help Buyers visualize the value, comfort, and joy of living in your home. The home has to be memorable. What does memorable mean? Something in the home or about the home needs to create a positive first and lasting impression.
Increase home maintenance and decrease the amount of deferred home maintenance, spruce up those areas that need attention, consider removing personalized wallpaper and borders, paint where needed, and if the home is vacant, consider staging the home.
With that being said, as a seller take an objective look at your 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 feature.
Should you de-clutter, do some remodeling, or take care of the deferred maintenance on your home? These are great questions that I can help you with.
These are just a few suggestions for you the seller. As Real Estate is always local, please contact me to discuss the options available to you.
Advice to Denver Home Buyers:
Home affordability is at record highs. What does this mean for you? 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.
Rental availability in the Denver market remains close to 1%, which is extremely low. Lifestyle continues to rate number one in the minds of Buyers. Establish your personal expectations of home ownership benefits and costs.
How does a first-time Buyer prepare for home ownership? The home is the emotional center of our lives, and it remains a critical component of one’s self. CALL ME TODAY! I can help.
Take advantage of this buying opportunity! Let the professionals at the Bandy Team help you buy or sell your Denver home. We also can show you some terrific properties in Englewood, homes in Washington Park, or real estate in Greenwood Village.
Until next time,