We are in a unique time when we have almost the same amount of homes go Under Contract that come on the market each month! Wow! But, for the first time in almost a year, the trend line for Inventory is slightly going up instead of down! I believe we will start to see a trend to a more balanced market, but it will take some time to get there. Many homes are selling very quickly with multiple offers, while others sit and don’t get many showings or no contracts! The difference is professional guidance. Let us be your guidance!
By the numbers, the inventory of available homes for sale is 6,945 homes at April month end, 6,892 homes came onto the market, 6,855 homes were placed under contract, and 4,714 homes closed for a closed dollar volume of $1.4 Billion. Prices are up 5% in the Denver Metro area from last month, and 12% from this time last year, putting average Denver home prices at levels not seen since their 2006 peak.
Monthly Market Recap: (See Graphs at End of This Article)
Single Family: Condos:
Active Inventory is 5,662 homes at month end Active Inventory is 1,283 homes
Sold homes is 3,798 Sold homes is 916
Average Days on Market is 56 Average Days on Market is 52
Median Sold Price is $280,000 Median Sold Price is $163,500
Average Sold Price is $336,123 Average Sold Price is $196,966
April Year-to-Date Market Recap (2013 versus 2012):
Single Family: Condos:
Active Inventory 5,662 versus 8,353 (↓32%) Active Inventory 1,283 versus 1,901 (↓33%)
Sold Units 11,997 versus 9,879 (↑21%) Sold Units 2,970 versus 2,452 (↑21%)
Median Price $266,000 vs $233,000 (↑14%) Median Price $152,000 vs $128,000 (↑19%)
Average Price $317,919 vs $283,682 (↑12%) Average Price $186,740 vs $163,787(↑14%)
Sales Volume $3.8B versus $2.8B (↑36%) Sales Volume $554M versus $402M (↑38%)
Days on Market 69 versus 100 (↓31%) Days on Market 62 versus 98 (↓37%)
April Market Facts:
Over 50% of the homes available for sale were on the market less than seven (7) days.
After nine months of inventory decline, the inventory of homes available for sale increased 4%.
Multiple offers are now the norm and on occasion lead to bidding wars.
Overall, the Denver home market has less than a two month supply of homes available for sale at the current sales rate. Single Family Residential homes have a 1.73 month supply and Condos have a 1.59 month supply.
Consumer confidence increases in April to 68.1 up from 61.9 in March.
Remember, real estate is local. While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.
Advice to Sellers:
Current media headlines proclaim “Denver Home Prices Soar As Buyers Battle It Out In Bidding Wars”. What does this mean to you as a seller?
The Denver home market is experiencing a speed in the market that has never been experienced in recent memory. Homes are coming onto the market and within days are under contract. In the short period of time while the home is available for sale, it is not uncommon for the property to have multiple showings resulting in multiple offers.
In today’s market, here are some questions that a seller should be prepared to answer:
What is my home worth?
What is the impact of multiple offers?
What are creative offers?
How do I evaluate multiple offers?
Each and every one of the above questions needs to be answered. Since selling a home is not an everyday activity, a seller needs to look to a full time professional for assistance.
The overall advice to sellers is the same as to buyers. Research your priorities, know your objectives, be prepared, and manage your expectations in this market.
While the Denver home market can be portrayed as a “seller’s market”, each and every home is unique which suggests professional assistance in selling the home.
Real Estate is not only local, but hyper-local to your neighborhood. Contact me to discuss the options available to you.
Advice to Buyers:
New home builders remain an alternative to the resale home market. Made sure you have your own representation from a Professional Realtor before going to the builder’s sales office. The salespeople work for the builder and have their interests in mind, not yours. It doesn’t cost you a thing to have us represent you. Our commission is paid by the builder.
Know what you want in a home, where you want to live, and what price range you can afford.
Be prepared for the speed of the market with low inventory and multiple offers. You may not get the first house you make an offer on.
Manage your expectations in order to timely participate in the home buying market.
Make sure you are pre-approved for a loan so you can move quickly.
Talk to me today about your lifestyle preferences, the benefits of home ownership, homes available for sale, buying a home in 2013, and home affordability.
The Bandy Team is here for all of your real estate needs. We can help you buy or sell a Denver homeContact the Bandy Team to see what we can do for you! If you’re thinking about buying a Denver home, we can show you some terrific property in Denver, including homes in Littleton and real estate in Highlands Ranch. You may also be interested in homes in Parker, or real estate in Cherry Hills Village.
Until Next Time,
The Bandy Team
RE/MAX Professionals- Denver, CO
"From Our Heart to Your Home"