GREATER METROPOLITAN DENVER MARKET UPDATE
JUNE, 2012
Market Metrics:
May is the first full month of the prime home selling/buying season. We are continuing to see more of the same; that being, limited amount of inventory of homes available for sale, continuing/expanding buyer demand, and multiple offers that are now happening in the higher price ranges. The limited inventory of homes available for sale and high buyer demand has led to the bidding wars which are prevalent. Denver continues to be one of the strongest home markets in the country.
Monthly Market Recap:
Single Family:
Active Inventory is 8,705 units at month end
Sold units is 3,768
Average Days on Market is 78
Median Sold Price is $258,000
Average Sold Price is $307,896
Condos:
Active Inventory is 1,886 units at month end
Sold units is 857
Average Days on Market is 81
Median Sold Price is $144,330
Average Sold Price is $179,253
May Year-to-Date Market Recap (2012 versus 2011):
Single Family:
Active Inventory 8,705 versus 13,958 (↓38%)
Sold Units 13,647 versus 11,792 (↑16%)
Median Price $240,000 vs $224,500 (↑7%)
Average Price $290,368 vs $274,168 (↑6%)
Sales Volume $3.9B versus $3.2B (↑23%)
Days on Market 94 versus 114 (↓18%)
Condos:
Active Inventory 1,886 versus 3,930 (↓52%)
Sold Units 3,309 versus 2,963 (↑12%)
Median Price $131,500 vs $121,000 (↑9%)
Average Price $167,793 vs $157,494 (↑7%)
Sales Volume $555M versus $466M (↑19%)
Days on Market 94 versus 122 (↓23%)
MAY, 2012 YTD HOME TRENDS:
The top three price ranges for sold Single Family homes are:
(1) $100,000 to $199,999
(2) $200,000 to $299,999
(3) $300,000 to $399,999
The top three price ranges for sold Condo homes are:
(1) $100,000 to $199,999
(2) $0 to $99,999
(3) $200,000 to $299,999
Advice to Sellers:
Recent surveys indicate that there is a shift in thinking when it comes to home ownership. Instead of looking at home ownership through the eyes of an economist, Americans are realizing that a home doesn’t solely equate to financial return or measure. The home is the emotional center of our lives, and it remains a critical component of who we are.
With the above being said; the inventory of homes for sale remains relatively low and the number of buyers increases daily. Are you prepared to be a seller? Have you done your homework, checked out the competition, taken care of all deferred maintenance items, and remodeled as necessary?
Sellers can improve their chances of getting a house sold by sprucing up the inside and out such that the home will create that lasting first impression.
Advice to Buyers:
Is home ownership still the American Dream? The Dream is alive. All indications are that the majority of Americans rated the importance of home ownership as 10 out of 10.
Now is the time for the Buyer to be prepared. Here is a list of things to consider when preparing for homeownership:
- - decide what you can afford
- - develop your home wish list
- - select where you want to live
- - start saving
- - get your credit in order
- - determine your mortgage qualifications
- - get preapproved
- - weigh the sources of your down payment
- - calculate the costs of homeownership
Additionally, a buyer should consider zoning and remodeling rules when looking to purchase a home. Are you prepared for a bidding war on the home of your choice?
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