Denver Real Estate Market Update August 2014

Market Metrics:

By the numbers:

-          The inventory of available homes for sale is 7,410 homes at July month end

-          6,211 homes came onto the market

-          5,266 homes closed

-          Median sold price is $282,500

-          Average sold price is $332,764

-          Closed dollar volume of $1.75 Billion. 

Monthly Market Recap:

Single Family:                                                                       

Active Inventory is 5,846                                                      

Sold Homes is 3,833                                                              

Median Price is $315,000                                                      

Average Price is $373,662                                         

Average Days on Market is 28                                                          

Condo:

Active Inventory is 1,564

Sold Homes is 1,435

Median Price is $185,500

Average Price is $223,551

Average Days on Market is 26

Year To Date Market Recap:

Single Family:                                                                       

Sold Homes is 21,544                                                                        

Average Sold Price is $361,032                                             

Condo:

Sold Homes is 7,958

Average Sold Price is $221,143

Source:  Metrolist, Inc./ReColorado.com – August 6, 2014

The above representation for Single Family and Condo includes real estate activity in the counties of Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, and Jefferson.

Market Facts:

-          The market frenzy has reduced and both buyers and sellers are more cautious.  Interest rates remain under 5%.

-          First time home buyers are coming back into the market and new household formations are happening.  The prime season is almost over and school has started.

-          Consumer confidence increased in July to 90.9 up from 86.4 in June.

Advice to Sellers:

Change continues, the prime season is almost over, and school has started.  Is now the time to list your home or if your home is listed; what does a seller do?

Previously the Sellers advice has touched on the basics of know your market, know your competition, know pricing, know buyer’s wants and needs, declutter, upgrade where necessary, maximize curb appeal, and be prepared.

With the season changing, the market will change also.  The frenzy of multiple offers seen earlier in the year will be more moderate and buyers will continue to make offers on homes that meet their lifestyle criteria.  The market will continue strong to year end; but, will slow down and fewer transactions will be finalized on an ongoing basis.

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.   

Advice to Buyers:

The prime season is ending and fall is around the corner.  What will the market look like for the remainder of the year?  How can Buyers compete in this ever changing market?  Will there be more homes available for sale?  What will be the impact on pricing?

The market will continue strong; but, will slow down as fewer transactions will be finalized.  Now continues to be a good time to look for a home and purchase the home of your dreams as the inventory of homes will start to increase moving into the Fall.

 

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 in different areas.