Thursday, December 26, 2013

Denver Real Estate Market Update December 2013



By the numbers:

-          The inventory of available homes for sale is 8,815 homes at November month end

-          3,441 homes came onto the market

-          3,607 homes were placed under contract

-          3,500 homes closed for a closed dollar volume of $1.1 Billion

The holidays are here and 2014 is fast approaching. Year over year comparisons continue to be on the rise so far.

Monthly Market Recap:

Residential (Single Family plus Condo):

-          Active Inventory is 8,815 homes at month end

-          Sold homes is 3,500

-          Average Days on Market is 44

-          Average Sold Price is $312,401

-          Median Sold Price is $250,000

November Year-to-Date Market Recap (2013 versus 2012):

Residential (Single Family plus Condo):

-          Active Inventory 8,815 versus 8,847 (↔)

-          Sold Units 50,795 versus 42,899 (↑18%)

-          Average Price $305,698 versus $278,783 (↑10%)

-          Sales Volume $15.5B versus $11.9B (↑30%)

-          Median Price $254,900 versus $232,000 (↑10%)                              

Market Facts:

Interest rates gradually increased upwards in the month of November.

Consumer confidence slightly decreased in November to 70.4 down from 71.2 in October.

Overall, the Denver home market has a two month supply of homes available for sale at the current sales rate.

This year will set many records in the Denver home market.

Advice to Sellers:

2014 is rapidly approaching and will be a year of many changes.  The Consumer Financial Protection Bureau (CFPB) will be implementing new rules in 2014.  Be Prepared is a motto that the Sellers need to keep in mind.  Many economic forecasts believe that 2014 will be a better year than 2013.     

An overview of the 2014 forecast is that employment will increase, mortgage interest rates will increase, home pricing will increase slightly, and consumer confidence will increase slightly.

Are you prepared as a seller for all prospective buyers?

Here are five (5) things to do before putting your home on the market for sale: 

-          Obtain a pre-sale inspection

-          Organize and clean everything

-          Obtain replacement estimates

-          Find warranty documentation, and spruce up your homes curb appeal.

Advice to Buyers:

2014 is rapidly approaching and will bring change for prospective home buyers.  The Consumer Financial Protection Bureau (CFPB) will have new rules that will be implemented in 2014.  One of the CFPB changes is the “Qualified Mortgage”.  Other changes will be implemented in 2014. 

In looking at 2014 from an economist’s perspective, the overall forecast is positive.

-          Employment will increase

-          Interest rates will increase

-          Home affordability will decrease slightly

-          Home buyer demand will continue

-          Home pricing will increase slightly

-          Consumer confidence is expected to increase.

Know what you want in a home, where you want to live, and what price range you can afford. 

Complete the pre-qualification process so you know the price range that you qualify for when you are purchasing a home.  Be prepared and manage your expectations.