GREATER METROPOLITAN DENVER MARKET UPDATE
With the Fall season upon us, August was a great month for the Denver Home Market. The inventory of available homes for sale was 10,826 homes at month end, 5,196 homes were placed under contract, and 4,685 homes closed for a closed dollar volume of $1.3 Billion. The prime home selling/home buying season is over and now the Denver market adjusts to the Fall season. Traditionally, this means fewer transactions each month.
Monthly Market Recap:
Active Inventory is 9,060 homes at month end
Sold homes is 3,730
Average Days on Market is 63
Median Sold Price is $262,000
Average Sold Price is $311,893
Active Inventory is 1,766 homes
Sold homes is 955
Average Days on Market is 69
Median Sold Price is $148,950
Average Sold Price is $183,359
August Year-to-Date Market Recap (2012 versus 2011):
Active Inventory 9,060 versus 13,436 (↓33%)
Sold Units 25,071 versus 21,346 (↑17%)
Median Price $250,000 vs $229,950 (↑9%)
Average Price $302,329 vs $281,964 (↑7%)
Sales Volume $7.6B versus $6.0B (↑26%)
Days on Market 81 versus 107 (↓24%)
August Market Facts:
Active Inventory 1,766 versus 3,195 (↓45%)
Sold Units 6,092 versus 5,297 (↑15%)
Median Price $138,900 vs $124,000 (↑12%)
Average Price $175,660 vs $158,593(↑11%)
Sales Volume $1.0B versus $840M (↑27%)
Days on Market 83 versus 119 (↓30%)
Days on market is down because 52% 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 3.1 months for Single Family and 2.4 months for Condos.
Advice to Sellers:
With the market seasonably adjusting for the remainder of the year, help Buyers visualize the value, comfort, and joy of living in your home. The home has to be memorable. What does memorable mean? Something in the home or about the home needs to create a positive first and lasting impression.
Increase home maintenance and decrease the amount of deferred home maintenance, spruce up those areas that need attention, consider removing personalized wallpaper and borders, paint where needed, and if the home is vacant, consider staging the home.
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?
Advice to Buyers:
Home affordability is at record highs. What does this mean? In summary, the cost of home ownership remains low when one takes into consideration the savings of monthly mortgage payments versus paying rent, the tax breaks of home ownership, building equity in your home, and the feeling of security that comes with home ownership.
Rental availability in the Denver market remains close to 1%. Lifestyle continues to rate number one in the minds of Buyers. Establish your personal expectations of home ownership benefits and costs.
How does a Buyer prepare for home ownership as the home is the emotional center of our lives, and it remains a critical component of one’s self. Make that call.