Denver Real Estate Market Update December 2012

GREATER METROPOLITAN DENVER MARKET UPDATE

DECEMBER, 2012

 

By the numbers, the inventory of available homes for sale is:

-          8,847 homes at November month end

-          3,653 homes came onto the market

-          3,893 homes were placed under contract

-          3,692 homes closed for a closed dollar volume of $1.0 Billion. 

 The outlook for the remainder of the year looks good as both home sellers and home buyers are focused on either selling their home by year end or buying their home by year end.

Monthly Market Recap:

Single Family:                                                           
Active Inventory is 7,336 homes at month end      

Sold homes is 2,975                                                   
Average Days on Market is 72                                  
Median Sold Price is $250,000                                  
Average Sold Price is $306,773                                 

Condos:

Active Inventory is 1,511 homes

Sold homes is 717
Average Days on Market is 64
Median Sold Price is $153,750
Average Sold Price is $198,080

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

Single Family:                                                           

Active Inventory 7,336 versus 10,213 (↓28%)         

Sold Units 34,439 versus 28,906 (↑19%)                 
Median Price $250,000 vs $229,900 (↑9%)              
Average Price $303,286 vs $280,230 (↑8%)             
Sales Volume $10.4B versus $8.1B (↑29%)             
Days on Market 77 versus 105 (↓27%)                     

Condos:

Active Inventory 1,511 versus 2,421 (↓38%)

Sold Units 8,460 versus 7,325 (↑15%)
Median Price $142,000 vs $125,000 (↑14%)
Average Price $179,036 vs $158,520(↑13%)
Sales Volume $1.5B versus $1.2B (↑30%)
Days on Market 78 versus 117 (↓33%)

November Market Facts:

At November month end, the inventory of homes available on the market continued to decline.  With this in mind, the Month’s Supply of Inventory is 2.38 months for Single Family and 2.00 months for Condos.  Month’s Supply of Inventory is calculated by taking the last twelve months homes sold numbers and calculating an average.  This number is then divided into the month end inventory to produce the Month’s Supply of Inventory.

Advice to Sellers:

The holiday season is upon us and the year end is around the corner.  If you have your home on the market or are thinking about putting your home on the market, staging is a critical consideration this time of year.  Specifically, keep your home warm and inviting, keep your home light – maintain lighting in all areas, keep your home basic – decorate for the holidays; but remove clutter wherever possible, keep your home clean and well maintained, and keep it neat both inside and outside.

According to recently released information, when prospective home buyers are asked about preferences of existing homes versus new homes; the results are overwhelming as 75% prefer an existing home over a new home.  The reasons for the preference are sense of community, established neighborhoods – thus a warmer inviting feeling, better construction, better privacy, and not cookie cutter, larger lot sizes, and mature landscapes.

Keep in mind that the holiday season brings out more serious buyers, the inventory of active home listings is low and thus the competition from other properties is less, and cold weather is a benefit in making the home feel cozy. 

Advice to Buyers:

Home prices are rising in the Denver area due to the rise of home affordability, the rise of household formations, the rise of rents, the decline of distressed sales and foreclosures, and the decrease of available inventory for sale.

Buyers have fewer choices due to the lower inventory of homes available for sale.  The lower inventory of homes available for sale is both good and bad for the home buyer.  “Be Prepared” should be the home buyer’s motto.