DENVER REAL ESTATE MARKET UPDATE
Once again the trends are confirming a greatly improved year for 2012 for the Denver Real Estate Market! Some notable stats are shown below as we see Median Prices versus a year ago up by 9%, Average Number of Days on the Market down by 26% and Sold Units up by 19%. Inventory is still very low and is down 30% from a year ago. If you know anyone who is thinking of selling their home, now is a great time to sell!
By the numbers, the inventory of available homes for sale is 9,719 homes at October month end, 4,556 homes came onto the market, 4,624 homes were placed under contract, and 4,095 homes closed for a closed dollar volume of $1.1 Billion. October overall was a good month. The outlook for the remainder of the year also looks good as we continue through the fall season. Traditionally, the holiday season means fewer transactions each month.
Monthly Market Recap: (See graphs below)
Single Family: Condos/Townhomes:
Active Inventory is 8,108 homes at month end Active Inventory is 1,611 homes
Sold homes is 3,246 Sold homes is 849
Average Days on Market is 67 Average Days on Market is 61
Median Sold Price is $255,000 Median Sold Price is $145,500
Average Sold Price is $304,237 Average Sold Price is $179,803
October Year-to-Date Market Recap (2012 versus 2011):
Single Family: Condos/Townhomes:
Active Inventory 8,108 versus 11,504 (↓30%) Active Inventory 1,611 versus 2,652 (↓39%)
Sold Units 31,464 versus 26,438 (↑19%) Sold Units 7,743 versus 6,725 (↑15%)
Median Price $250,000 vs $229,820 (↑9%) Median Price $140,000 vs $125,000 (↑12%)
Average Price $302,956 vs $280,629 (↑8%) Average Price $177,273 vs $158,965(↑12%)
Sales Volume $9.5B versus $7.4B (↑28%) Sales Volume $1.4B versus $1.0B (↑28%)
Days on Market 78 versus 106 (↓26%) Days on Market 79 versus 118 (↓33%)
October Market Facts:
The fall home selling/home buying season defies traditional seasonality as buyer demand continues.
The most frequently used forms of financing are Conventional, FHA, and CASH, in that order.
Rents continue to rise, rental unit availability is low, and home affordability remains high.
Absorption ratio is 2.7 months for Single Family and 2.1 months for Condos.
Remember, markets are local. While the above is a representation of the Denver real estate market as a whole, please contact me to better understand your specific market.
Advice to Sellers:
With less than two months remaining in 2012, is now the time to sell your home? Take into consideration the following facts:
- Pent up buyer demand continues as evidenced by the October statistics,
- Inventory of available homes at October month end decreased when compared to the previous month end,
- Buyers have a desire to be in their new homes as soon as possible,
- Rising home prices are giving a long-awaited boost to the housing market,
- New home builders are again an alternative for the home buyer.
According to recently released information, the top three categories of fall season buyers are first timers, move up, and right sizing buyers. Additionally, it has been reported that buyers now expect to stay in homes 15 years compared to 10 years noted in previous surveys.
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, looking out into the front yard; what is memorable about your home and what type of home buyer will your home attract?
Contact me to discuss what marketing strategies are available to you.
Advice to Buyers:
The fall home buying season is here. .What does that mean to the home buyer?
- The number of available homes will decrease as we move to the end of the year,
- Lifestyle motivation will be the driving force of the market,
- Rental availability will be minimal and rental rates will increase,
- Home affordability will remain high,
- Mortgage interest rates are expected to stay low,
- The time a home is available (days on market) will remain in the 60 plus day range,
- Loan pre-approval is a must,
- “Be Prepared” to act quickly should be the home buyer’s motto.
It’s important for a Buyer to thoroughly prepare for home ownership as the home is the emotional center of our lives, and it remains a critical component of one’s self.
Call me today to get started!
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 Denver home, we can show you some terrific property in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in acreage property in Franktown or real estate in Parker, including a wide variety of property in Stonegate.
Until Next Time,
The Bandy Team
RE/MAX Professionals- Denver, CO
"From Our Heart to Your Home"