GREATER METROPOLITAN DENVER MARKET UPDATE
The prime home selling/home buying season is almost over and Denver is moving into the summer/fall season. The new normal for inventory of active listings is between 10,000 and 11,000 homes on the market. July activity is usually slower than June activity and this July continued the tradition. For the month of July, 4,700 homes were placed on the market and 4,618 homes sold. Denver continues to be one of the strongest home markets in the country.
Monthly Market Recap:
Single Family: Condos:
Active Inventory is 9,087 homes Active Inventory is 1,740 homes
Sold homes is 3,713 Sold homes is 905
Average Days on Market is 64 Average Days on Market is 69
Median Sold Price is $259,000 Median Sold Price is $154,000
Average Sold Price is $312,920 Average Sold Price is $190,269
July Year-to-Date Market Recap (2012 versus 2011):
Single Family: Condos:
Active Inventory 9,087 versus 14,014 (↓35%) Active Inventory 1,740 versus 3,569 (↓51%)
Sold Units 21,341 versus 18,169 (↑17%) Sold Units 5,137 versus 4,501 (↑14%)
Median Price $249,000 vs $228,500 (↑9%) Median Price $137,500 vs $122,165 (↑13%)
Average Price $300,658 vs $281,597 (↑7%) Average Price $174,229 vs $156,921(↑11%)
Sales Volume $6.4B versus $5.1B (↑25%) Sales Volume $895M versus $706(↑27%)
Days on Market 84 versus 109 (↓23%) Days on Market 86 versus 121 (↓29%)
July Market Facts:
Days on market is down because 55% of the listings went under contract in 30 days or less.
The most frequently used forms of financing are Conventional, FHA, and CASH.
CASH is the number two form of financing for Condos.
Rents continue to rise, rental unit availability is low, and home affordability remains high.
Absorption ratio is 3.2 months for Single Family and 2.4 months for Condos.
Advice to Sellers:
Buyers are looking at homes multiple times. The first time is either as a drive by or via the internet. In both cases, the home has to be memorable so it will be considered in the short list of homes from which a showing will be requested. What does memorable mean? Something in the home or about the home needs to create a positive first and lasting impression.
With that being said, as a seller take an objective look at your home. From the curb, at the front door, inside the home, at the back door, looking out into the back yard; what is memorable about your home. Now accentuate that memorable sensation.
Should you de-clutter, do some remodeling, or take care of the deferred maintenance on your home?
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:
Be Prepared is the advice of the day. If you find the home of your dreams, act now. 55% of homes went from an active (on the market) status to under contract status is 30 days or less in the month of July.
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.
The home is the emotional center of our lives, and it remains a critical component of who we are.