Tuesday, July 17, 2012

Denver Real Estate Market Update July 2012

Market Metrics:

With one (1) month remaining in the prime home selling/home buying season, June month and June Year To Date real estate statistics show the continuing trend of historically low inventory of available homes, high buyer demand, low mortgage interest rates, and increased due diligence needed to complete a mortgage loan.  Denver continues to be one of the strongest home markets in the country.


Monthly Market Recap: 

Single Family:                                                            Condos:
Active Inventory is 9,074 homes at month end          Active Inventory is 1,851 homes

Sold homes is 3,981                                                    Sold homes is 923

Average Days on Market is 71                                   Average Days on Market is 74

Median Sold Price is $269,500                                   Median Sold Price is $144,900

Average Sold Price is $324,497                                  Average Sold Price is $181,578


June Year-to-Date Market Recap (2012 versus 2011):

Single Family:                                                            Condos:

Active Inventory 9,074 versus 14,215 (↓36%)          Active Inventory 1,851 versus 3,811(↓51%)

Sold Units 17,628 versus 15,087 (↑17%)                  Sold Units 4,232 versus 3,748 (↑13%)

Median Price $245,500 vs $226,500 (↑8%)               Median Price $134,957 vs $122,000 (↑11%)

Average Price $298,075 vs $278,113 (↑7%)              Average Price $170,799 vs $157,697 (↑8%)

Sales Volume $5.2B versus $4.2B (↑25%)                Sales Volume $722M versus $591M(↑22%)

Days on Market 89 versus 111 (↓20%)                      Days on Market 89 versus 123 (↓28%)


Is it a Seller’s Market or is it a Buyer’s Market?

At June month end, the absorption ratio, also known as, month’s supply of available inventory is 3.2 months for Single Family and 2.6 months for Condos.

This annualized calculation takes the current month end inventory divided by the monthly average number of sold homes for the last twelve (12) months.

Historically, six (6) months or less is a Seller’s Market.


Advice to Sellers: 

The hottest home remodeling job isn’t the kitchen anymore.  It is now the bathroom on a more modest scale.  Key factors are easy upkeep, cost, and adding accessibility.  Fancy showers with a bench are now in.  Kitchen remodeling is now number two (2) on the top remodeling list.

If you do not want to remodel, consider these five (5) ways to spruce up the bathroom – remove clutter from the bathroom and have it look similar to what you see in a hotel, clean it until it sparkles, use fluffy towels and bath mats, display flower vases, and fix any grout or caulking and remove mildew stains.

How hot is the Denver market?  A little known fact is that 27,000 Single Family homes have been put on the market in the first six months of the year, and 24,000 Single Family homes have gone under contract.  Wow!

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.

Is it a good time for your home to be on the market?  Absolutely, there has been no better time the past few years than now.


Advice to Buyers:

Be Prepared is the advice of the day.  If you find the home of your dreams, act now.

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, and calculate the costs of homeownership.

The home is the emotional center of our lives, and it remains a critical component of who we are.

Want to learn what BE PREPARED means? 

REMAXPROSmarketupdate072012.pdf Download this file
REMAXPROSmarketstatistics062012.pdf Download this file
REMAXPROStrends062012.pdf Download this file
mthendinvchart07to12062012.pdf Download this file
mthendinvsold07to12062012.pdf Download this file


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Thirty-year mortgage rate drops to another record low – USATODAY.com

Thirty-year mortgage rate drops to another record low – USATODAY.com