Saturday, September 27, 2014

Denver Real Estate Market Update September 2014


Market Metrics:

By the numbers:

-          The inventory of available homes for sale is 7,227 homes at August month end
-          5,426 homes came onto the market
-          4,855 homes closed at a median sold price of $275,500
-          Average sold price of $329,399
-          Closed dollar volume of $1.6 Billion. 

Monthly Market Recap:

Single Family:                                                           
Active Inventory is 5,788                                                      
Sold Homes is 3,488                                                              
Median Price is $312,250                                                      
Average Price is $372,684                                         
Average Days on Market is 29                                                          

Active Inventory is 1,439
Sold Homes is 1,367  
Median Price is $182,000
Average Price is $218,955
Average Days on Market is 24

Year To Date Market Recap:

Single Family:                                                                       
Sold Homes is 25,157                                                                        
Average Sold Price is $362,510

Sold Homes is 9,376
Average Sold Price is $220,839                     

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:
With the end of August behind us and fall around the corner, the market remains strong; but, yet the market is showing a seasonal slowdown.

-          Home affordability increased in August.
-          Mortgage interest rates were lower in August with a 30 year conventional rate around 4%.
-          Consumer confidence increased in August to 92.4 up from 90.3 in July.

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

Advice to Sellers:

In the Denver home market seasonal slowdown is here and yet the market is expected to stay strong for the remainder of the year and possibly set several records again this year.

Now is the time to look as if you were a Buyer.  What stands out and what does not stand out?  Is it time to de-clutter, update your home, possibly do some remodeling, or change the curb appeal?

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 knowledgeable, and can assist in the Professional plan to sell one’s home.  Now is the time to reach out to a Professional.

Advice to Buyers:

Three plus months remain in 2014.  If you are a Buyer, you will see a slowdown in the market even though it will continue strong.  There may be more homes available for sale; but, Sellers will be expecting to receive premium price offers for their home.

The market has shown for the last two years that even with the seasonal slowdown, it continues to be a good time to look for a home and purchase the home of your dreams.      

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