So, How’s the Market, February, 2010
All data taken from Metrolist, Inc, on February 4, 2010. Denver, Colorado.
“If you believe real estate is cyclical, then the facts show the market has hit bottom and is on the way back up.”
February 2010 has the lowest residential and condo inventory in 7 years. This month also displays the highest number of home under contract for a February since 2006 and although the sold data is lagging behind previous years, the 2010 spring season is showing signs of a rebound.
There are Five Facts why 2010 will be a more consistent year in residential real estate in Denver Colorado
The First Fact: 2010 will be improved over past years are inventories are at historical lows in Denver.
Inventory in February of 2010 is the lowest level in 7 years. With single family and condo units that are for sale totaling 18,716, makes for a 8.7% decrease in the number of available properties over February of 2009 and a whopping 28.1% over February of 2006.
• Inventory rose from January 2010 to February 2010 11.5%, which is higher than the average for previous January’s to February’s.
• There are 13,833 single family homes on the market in February.
• Single Family Homes priced above $750,000 make up 13.3% of total inventory which is higher than normal.
• Properties priced above $750,000 in the single family category that sold in January 2010 make up 1.2% of all sales in Denver.
• Inventories of single family homes in the 0-$250,000 make up 38.7% of the listing on the market.
• Homes priced 0-$250,000 will continue to outperform the market, but will also cause the median price in Denver to remain below $250,000 for 2010.
• Properties priced from 0-$250,000 that sold in January 2010 made up 61.6% of all sales in the Denver area.
• Homes priced from $250,000 to $500,000 make up 37.9% of the inventory.
• The sold data of homes closed in January 2010 priced between $250,000 and $500,000 represent 32.1% of single family homes sold.
• Single Family Homes constituted 74.9% of all sales in the single family-condo markets in metro Denver.
• Condominiums priced from 0-$250,000 made up 87.2% of all the condo’s sold in January 2010.
• Condominiums priced above $750,000 represented 2.6% of all condo sales in January 2010.
The Second Fact: 2010 Tax Credits extended to April 30th of 2010 will propel the market forward.
• First Time Home Buyers can receive up to $8000 Tax Credit when buying a home this spring.
• Move up homeowners can receive up to a $6500 Tax Credit when buying a home before April 30, 2010.
• To take full advantage of the tax credits, the buyer purchase must close before June 30, 2010.
• These incentives with low interest rates will create activity the first half of 2010 that was not realized in the first half of 2009.
The Third Fact: 2010 will be improved over previous years as Denver’s pipeline of homes under contract is the highest it has been since 2006 for a February.
The Fourth Fact: A Compelling Reason Denver’s Real Estate Market is on the Upswing is Sold data has hit lows in both Single Family and Condominiums and will start to rise.
• Sold data is the trailing indicator of market conditions.
• January 2010 is 12% less in single family and condo sales than January of 2009.
• Single Family sales decreased by 14% and Condo’s decreased by 5.5% from January 2009 to January 2010.
The Fifth Fact: The Market is bouncing along the bottom and will improve over 2009 is we have reached a new normal in real estate on how homes will be transferred.
• The market consumer is better understanding and creating a new trend to Avoid Foreclosures.
• Short Sales have made up approximately 7% of all sales for 2009 and will double that number in 2010.
• Lenders are offering more alternatives to foreclosure than ever before.
• The Colorado Foreclosure Protection Hotline provides consumers with excellent FREE information on the foreclosure process. Colorado Foreclosure Prevention Hotline 1-877-601-HOPE www.coloradoforeclosurehotline.org
• Homeowners should seek the advise of a professional broker in dealing with foreclosure and short sales.
• Auctions will diminish the foreclosure inventory at faster rates than people expect.
• Auctions will help sell re-sale non-distressed homes to determine true market value.
• 1031 Exchanges will help homeowners move up or down without having to sell their homes.
• Investors will use their Retirement Accounts to buy lower priced properties to build a portfolio in their IRA.
• Denver’s unemployment is 7.5% compared to 9.8% nationally which makes for a more stable economic condition.
Overall 2010 will bring compelling reasons to buy real estate in Denver.
• The $8000 tax credit for first time homebuyers and the $6500 dollar tax credit for existing home buyers will increase demand the first half of 2010.
• Interest rates appear to remain low through the first 6 months of the year.
• Continued fewer new home starts will create less competition for resale homes.
• Check out the RE/MAX Professionals Auction on April 10, 2010
• Prices for the upper end market continue to offer extraordinary concessions making for a perfect time to acquire the home of your dreams.
What should buyers do in today’s market?
• Take advantage of your “Move-up Power” Today.
• Get qualified before starting your search to become more attractive to sellers.
• Consider terms over price in some instances to move into your dream home.
What should sellers do in today’s market?
• Know the market price for your home and have a cash price for your home in the back of your mind to entice a quick sale.
• Consider reverse offers when conditions warrant, especially on upper end properties.
• In the lower price ranges, be the best conditioned to get multiple offers.
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