Sunday, May 31, 2015

Denver Real Estate Market Update May 2015

Market Metrics:

By the numbers: 

-          The inventory of available homes for sale is 4,765 homes at April month end

-          6,735 homes came onto the market

-          5,439 homes went under contract

-          4,436 homes closed

-          Median sold price of $315,000

-          Average sold price of $361,309

-          Closed dollar volume of $1.6 Billion. 

Monthly Market Recap:

Single Family:                                                                       

Active Inventory is 3,840                                                      

Sold Homes is 3,158                                                                          

Average Price is $404,384                                         

Median Price is $350,000                                          

Average Days on Market is 29                                  


Active Inventory is 925

Sold Homes is 1,278

Average Price is $254,869

Median Price is $205,000

Average Days on Market is 21          

Year To Date Market Recap:

Single Family:                                                                       

Sold Homes is 9,888                                                                          

Average Sold Price is $392,144                                             

Median Sold Price is $339,550                                  


Sold Homes is 4,105

Average Sold Price is $249,606

Median Sold Price is $200,000

Market Facts:
Today’s higher prices have been expected as the economy improves and the first time and boomerang home buyers return to the market.  Even though demand outpaces supply, there is no indication that a housing bubble is on the horizon even though the Denver home market is now considered number one in the national home market.

Yes, new listings have increased dramatically in April; but, the overall shortage of active listings and the abundance of buyers equal the ingredients for hot, Hot, HOT market in the mid to lower price ranges.

Advice to Sellers:
The spring home market is underway with more homes coming unto the market; but, yet buyer demand exceeds the availability of homes on the market.  What is the one thing a Seller can do?  Create a lasting memory for house hunters otherwise known as Buyers.  Is it curb appeal?  Is it remodeling of the bathroom or kitchen?  Is it new windows and doors?  Is it de-cluttering and staging?  Whatever it is, find that one thing about your home that will leave a lasting memory when your home is shown to a prospective buyer.  Remember that 30% of Americans are looking to buy either in 2015 or next year in 2016.  As such, Buyer demand will remain strong for the remainder of the year and into next year.  With low inventory, increasing household formations, and pent up buyer demand; Sellers should expect many showings, multiple offers, even offers without the prospective Buyer ever seeing the home and creative Buyer outreach either by video, letter, or person to person.

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, knowledgeable, and can assist to sell one’s home.

Advice to Buyers:
Over 6,700 new listings came onto the market this month and yet buyer demand continues to increase as we are moving through the spring home market because of improvement in the overall economy, increase in population, rising rental rates, desire to move, and affordable mortgage interest rates.  Creativity is the name of the game with Buyers as Cash financing is happening more and more, Responsive is number one, Eager is number two, Active is on, Time is of the essence, Involved, Venturesome, Idealic, Thorough, and Yes are the guidelines that Buyers use when looking to buy a home.  Buyers are experiencing frustration as it takes several offers on several homes to acquire a home.

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.