The July 2014 stats for Greater Metro Denver have been tallied, and our seller's market here is still going strong. Based on data from the seven Metro Denver counties, here are some highlights:
* 48% of all homes that sold in Metro Denver during July, went under contract within 7 days
* 56% of all homes that sold in Metro Denver during July, sold at or above their asking price
* Average days on the market for detached units under $400,000 was 18 days - down from the historical average of 100 days on market.
This is obviously great news for Sellers!
But…on the flip side, there are currently only 23% of homes for sale needed to satisfy the overall demand. This amount of inventory is nearly 30% less than we had one year ago.
This is proving incredibly frustrating for Buyers!
Supply Remains Near All-Time Lows
By price range, the amount of homes for sale as a percentage of the amount needed to satisfy overall demand looks like this:
$0 -199K, only 9%
$200-399K, only 14%
$400-599K, only 37%
$600-799K, only 68%
$800-999K, only 86%
This is the 3rd lowest supply of inventory on record.
Because of this shortage, the overall odds of selling in July were 57% - close to the highest this number has been in 7 years. Prior to the market recovery in 2012, the odds of selling were down around 25%.
Not only were the odds of selling in the seller's favor, but the average sold price was $373,674 - the highest average price Denver has EVER recorded! (The highest % of original sold price ratios occur in the first 2 weekends a property is on the market.)
What is a Balanced Market and How is it Calculated?
The statisticians take the number of transactions that closed in July (5,274) multiplied by six to arrive at the number of active listings needed to create a balanced market (31,644) with 6 months of inventory. However, at the end of July, there were only 7,357 active listings in the market place, leaving Metro Denver 76% SHORT of required inventory to supply homes to everyone who is in the market to buy. This has reduced inventory of homes for sale to the second lowest supply on record - currently hovering at 1.1 months of inventory.
Many Buyers are Using Cash
There has been an increase in cash transactions since the stock market crash in 2008, which suggests that many buyers are using cash transactions to win over financed offers.
How do destressed sales figure into all this selling?
By definition, a distressed sale is a property which is to be sold in order to pay arrears on a mortgage (i.e. a short sale, REO-Lender owned, HUD). In Greater Metro Denver, distressed sales continue to wane, as banks are less likely to approve short sales. The percentage of distressed sales has dropped from the peak of 41% in spring 2011, to only 3% in July. This number continues to decline.
So, it's clear that people want to buy homes in the Denver area now more than ever. Now we just need more people interested in taking advantage of high selling prices and short time on the market to list their homes! In the meantime, buyers have to move quickly.
If you'd like to view homes for sale in your price range, please register on our site www.themyersteam.com
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