Denver Real Estate Market Update May 2013

Market Metrics:

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

-          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, 12% from this time last year, putting the average home prices at levels not seen since their 2006 peak.

Monthly Market Recap:

Single Family:                                                           
Active Inventory is 5,662 homes at month end         

Sold homes is 3,798                                                   

Average Days on Market is 56                                  

Median Sold Price is $280,000                                  

Average Sold Price is $336,123                                 

 

Condos:

Active Inventory is 1,283 homes

Sold homes is 916

Average Days on Market is 52

Median Sold Price is $163,500

Average Sold Price is $196,966

 

April Year-to-Date Market Recap (2013 versus 2012):

Single Family:                                                           

Active Inventory 5,662 versus 8,353 (↓32%)                       

Sold Units 11,997 versus 9,879 (↑21%)                   

Median Price $266,000 vs $233,000 (↑14%)            

Average Price $317,919 vs $283,682 (↑12%)           

Sales Volume $3.8B versus $2.8B (↑36%)               

Days on Market 69 versus 100 (↓31%)                     

Condos:

Active Inventory 1,283 versus 1,901 (↓33%)

Sold Units 2,970 versus 2,452 (↑21%)

Median Price $152,000 vs $128,000 (↑19%)

Average Price $186,740 vs $163,787(↑14%)

Sales Volume $554M versus $402M (↑38%)

Days on Market 62 versus 98 (↓37%)

March 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 in some price ranges 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.

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.  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 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.   

Advice to Buyers:

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.

Manage your expectations in order to timely participate in the home buying market.