Tuesday, May 27, 2014

Denver Real Estate Market Update May 2014

MAY, 2014

Market Metrics:

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

-          6,268 homes at April month end
-          6,239 homes came onto the market
-          4,196 homes closed at a median sold price of $272,500
-          Average sold price is $325,052 resulting in a closed dollar volume of $1.4 Billion. 

Monthly Market Recap:

Single Family:                                                                       
Active Inventory is 4,940                                                      
Sold Homes is 3,077                                                                          
Median Price is $305,000                                                      
Average Price is $361,248                                         
Average Days on Market is 39                                                          

Active Inventory is 1,328
Sold Homes is 1,119
Median Price is $176,000
Average Price is $225,522
Average Days on Market is 35

Year To Date Market Recap:

Single Family:                                                                      
Sold Homes is 9,747                                                                          
Average Sold Price is $345,914                                             

Sold Homes is 3,523
Average Sold Price is $214,773

Market Facts:

The inventory of homes available for sale remains low and buyer demand remains strong.
Interest rates although affordable continued an upwards trend in the month of April.

Consumer confidence decreased in April to 82.3 down from 83.9 in March.

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

Advice to Sellers:

The Denver home market remains strong and the prime home buying season is here.  With less than a two month supply of homes available for sale, buyers are gearing up to present creative offers to sellers.

As a homeowner, seller, or prospective seller, one needs to know the market.  Here are several questions that need to be asked and evaluated:  what is my home worth, how much equity does one have in the home, what is or would be my home’s competition, what are buyers looking for in a home, does one need to update the home, if you update the home, what update should you do, and when the home sells, how and when does one find the new home?

What is a creative offer?  How does one sell your home in this market?  How does one buy a home in this market?

What is a seller to do?  Know the market, prepare your home, de-clutter, take care of deferred maintenance, and reach out to a Professional.

Advice to Buyers:

With a strong market and limited availability of homes on the market, how does a buyer find the home of one’s dreams?  What is needed and what does creativity mean today?  Now is the time to reach out.       
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.   

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