Denver Real Estate Market Update February 2016

7 COUNTY METROPOLITAN DENVER MARKET UPDATE

FEBRUARY, 2016

By the numbers:

-          The inventory of available homes for sale is 3,889 homes at January month end

-          3,701 homes came onto the market

-          3,457 homes went under contract

-          2,770 homes closed

-          Median sold price of $318,300

-          Average sold price of $372,966

-          Closed dollar volume of $1.0 Billion. 

Monthly Market Recap:

Single Family:                                                                      

Active Inventory is 3,043                                                     

Sold Homes is 1,980                                                                          
Average Price is $414,033                                         
Median Price is $347,500                                          
Average Days on Market is 46                                                          

Condo:

Active Inventory is 846

Sold Homes is 790
Average Price is $270,041
Median Price is $213,000
Average Days on Market is 41

Year To Date Market Recap:

Single Family:                                                                       

Sold Homes is 1,980                                                              

Average Sold Price is $414,033                                            
Median Sold Price is $347,500                                  
Average Days on Market is 46                                  

Condo:

Sold Homes is 790

Average Sold Price is $270,041
Median Sold Price is $213,000
Average Days on Market is 41

Market Facts:

January 2016 set records when compared to prior January home transactions.  Buyer demand remains strong and the inventory of active listings remains low.  More apartments are coming on the grid which is increasing apartment vacancy.  Buyers and Sellers need to be aware of all facts impacting the Denver home market.  The prime home selling and buying season is around the corner and as a Seller or a Buyer, be prepared.  Remember that the home market is changing.

Advice to Sellers:

Recognizing that “Housing Forecasts” predict a healthy real estate market for 2016, Seller’s need to be aware that the housing market is forecasted to be a Seller’s market due to strong Buyer demand, relatively low inventory of homes for sale, and reasonable price appreciation.  With this being said, here are some top tips for 2016 Seller’s.  List your home during the prime home selling and home buying season which is just around the corner. Strong Buyer demand will benefit Sellers.   Second, price your home to the market.  Beware of pricing for homes sold in or near your neighborhood or are a similar home to yours.  This knowledge will benefit the Seller.  Third, consider what you as a Seller needs to do to your home or if you may need to offer incentives to make the home more marketable.

Denver will see more Buyers from all over the world.  Denver will continue to be in the top 10 home markets in 2016.  Consumers will continue to focus on home ownership.

Seller preparation is key and includes a good pricing comparison analysis, instructions on staging, what are the top improvements, and a conversation on how the market functions.  As such, the homeowner looking to sell a home needs a professional who is a local expert, and can assist in the Professional plan to sell one’s home.   

Advice to Buyers:

The 2016 housing market is forecasted to be primarily a Seller’s market mainly due to high Buyer demand and low inventory of homes for sale.  The prime home selling and buying season is just around the corner and expect another market frenzy year. As a Buyer, be the early bird and get into the home market now, do your homework and be approved for the best mortgage option for you, consider buying a new home that meets your expectations, and look at the entire home market.  Be aware of moderate home price growth and potential increase in mortgage interest rates.  Create your home buying plan and stick to it.

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.