Wednesday, July 30, 2014

Denver Real Estate Market Update July 2014

Market Metrics:

By the numbers:

-         The inventory of available homes for sale is 6,888 homes at June month end
-         6,488 homes came onto the market
-         5,426 homes closed
-         Median sold price is $284,950
-         Average sold price is $335,737
-         Closed dollar volume of $1.82 Billion. 

Monthly Market Recap:

Single Family:                                                            
Active Inventory is 5,460                                                         
Sold Homes is 3,984                                                                           
Median Price is $313,500                                                        
Average Price is $376,138                                          
Average Days on Market is 28                                                

Active Inventory is 1,428
Sold Homes is 1,442
Median Price is $180,000
Average Price is $224,116
Average Days on Market is 24

Year To Date Market Recap:

Single Family:                                                           
Sold Homes is 17,605                                                                         
Average Sold Price is $358,454                                              

Sold Homes is 6,486
Average Sold Price is $220,658

Market Facts:

-         The availability of active listings remains limited and prospective buyers are becoming even more creative in the market.
-         Interest rates remain under 5%.
-         Available rentals are increasing somewhat, rents continue to remain high, and home ownership is generally cheaper than renting.
-         Consumer confidence increased in June to 85.2 up from 82.2 in May.

Advice to Sellers:

In a limited inventory market such as Denver, multiple offer situations for sellers are the norm.  Something that is new in the market is simultaneous offers on multiple homes when the buyer intends to buy.  Additionally and slowly, first time home buyers are returning to the market. 

If your home is on the market or will be soon, how do you satisfy a buyer’s need resulting in the successful sale of your home?  Let’s not forget that buyers have done their homework, know exactly what they want in their new home, and will only compete for the homes of their dreams.  As such, the homeowner looking to sell one’s home needs a professional who is a local expert, is hyper local market (neighborhood) knowledgeable, and can assist in the Professional plan to sell one’s home.  Now is the time to reach out.

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?

Know the market, maximize the curb appeal, prepare your home, de-clutter where necessary, update where appropriate, take care of deferred maintenance, and reach out to a Professional.

Advice to Buyers:

Creativity is the word of the day.  For example: when having your REALTOR® present your offer, include a video from you and yours which highlights the reason why the seller’s home is your American Dream, consider offering at a competitive price, be willing to compete against other buyers, and most recently consider making simultaneous offers on multiple properties.  

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, manage your expectations, and be open to looking at the entire Denver market.  Reach out to a Professional today about your best options and opportunities to participate and succeed in the purchase of your “Dream” home.