2013 Real Estate Market Trends
2013 will be the hottest year for real estate since 2005 nationwide and in my local community Evergreen CO and Conifer.
Everybody knows by now that the real estate market has picked up, in some areas sooner and other areas later, in some areas relativley more like Phoenix and in other areas not at all like Detroit. Denver CO and surrounding communities were never as much down as Arizona or Florida, hence the up swing is not as high.
What is going on? After all price is a matter of supply and demand. Over the last year inventory has gone down and demand has been climbing up. Makes sense, doesn't it?
There are 3 indicators that you need to watch in order to predict where the housing market is going:
- Percent of homes with price reductions
- Price of new homes listed
- Median days on market
1. The percentage of homes with price reductions has gone down from a rate over 40% and in some markets 50% to a mere 28% nationally (38% is considered a stable market), which indicates that the market is bullish. As realtors in the everyday battle of selling homes, we have noticed that we run into situations of multiple offers situations every day. What a shift from the last 5 years!
2. Prices of newly listed homes have gone up. Realtors know what is going on in their market and for once they find sellers happily listening to them. This is another indication that we are in for a strong 2013.
3.The median days on market shows how many days it takes to sell a home. In Denver we are right now at 39 days. This is a fabulous indicator that the market is bullish. By the way, do not take average days on market since it will not give you the right picture, since this number can be distorted by old listings that have been sitting on the market for ever.
Just to tell you about a home that went on the market a week ago: A nice Evergreen single family home came on the market for $769,000. The sign wasn't even up yet buyers were touring the home. Two days later the listing agent had two offers on the table. It went under contract the next day. Many of these homes in this price point in Evergreen go under contract for full price sometimes more.