DENVER MARKET UPDATE
July is the second month in 2011 where 3,835 homes closed at an average price of $270,066 which resulted in $1.0 Billion in sales volume for the month. June 2011 was the first month for 2011 to achieve these numbers.
Monthly Market Recap:
Active Inventory is 14,014 units at month end
Sold units is 3,082
Median Sold Price is $237,000
Average Sold Price is $298,654
Active Inventory is 3,569 units at month end
Sold units is 753
Median Sold Price is $123,150
Average Sold Price is $153,058
July Year-to-Date Market Recap (2011 versus 2010):
Active Inventory 14,014 versus 17,983 (↓22%)
Sold Units 18,169 versus 19,138 (↓5%)
Median Price $228,500 vs $230,000 (↓1%)
Average Price $281,597 vs $279,800 (↑1%)
Sales Volume $5.1B versus $5.4B (↓6%)
Days on Market 109 versus 83 (↑31%)
Absorption Rate 6.13 versus 6.61 (↓7%)
Active Inventory 3,569 versus 5,467 (↓35%)
Sold Units 4,501 versus 5,111 (↓12%)
Median Price $122,165 vs $135,000 (↓10%)
Average Price $156,921 vs $161,055 (↓3%)
Sales Volume $0.7B versus $0.8B (↓14%)
Days on Market 121 versus 88 (↑38%)
Absorption Rate 6.26 versus 7.28 (↓14%)
Note: Absorption Rate is also known as Month’s Supply of Inventory and represents the number of months that would be needed to deplete the current active listings inventory at the current sales rate.
Advice to Sellers:
The inventory of active listings continues to remain low in the Denver market and normally this would represent a “seller’s market”. Mortgage rates have reached record lows and competitive rents are going up. If you are a seller, how do you overcome the basic buyer reluctance which is the fear of paying too much? How do you represent the value of your home? What are the creative options that you need to be aware of in today’s market? These are some of the questions that sellers are asking to find that perfect buyer. Interest rates and inventories will play a key role in future sales numbers, watch them carefully.
Advice to Buyers:
Mortgage rates reach record lows and rents are going up. What does this mean to you? For one, the lower the mortgage rate equates to a larger price range of a home that you can afford. Higher rents open up home ownership possibilities. Is home ownership right for you?
Let’s review the 7 steps to take before you buy a home? The steps are: decide how much you can afford, develop your home wish list, select where you want to live, start saving, ask about all the costs before you sign, get your credit in order, and get prequalified. Additionally, know how much financing you qualify for, research your priorities, establish a wants list, and establish a needs list. Pay attention to only the local market as real estate is local. The local real estate market can be a single home, a block of homes, or a subdivision.
Lifestyle continues to rate number one in the minds of buyers. Establish your personal expectations of home ownership benefits and costs.