Denver Real Estate Market Update October 2016

Denver Real Estate Market Update October 2016

By the numbers:

-          The inventory of available homes for sale is 7,043 homes at September month end

-          5,739 homes came onto the market

-          4,692 homes went under contract

-          4,471 homes closed

-          Median sold price $347,000

-          Average sold price $397,011

-          Closed dollar volume of $1.775 Billion. 

Monthly Market Recap:

Single Family:                                                                       

Active Inventory is 5,515                                                     

Sold Homes is 3,153                                                                          

Average Price is $442,750                                         

Median Price is $380,000                                          

Average Days on Market is 31                                                          

Condo:

Active Inventory is 1,528

Sold Homes is 1,318

Average Price is $287,590

Median Price is $245,000

Average Days on Market is 32

Year To Date Market Recap:

Single Family:                                                                       

Sold Homes is 28,384                                                            

Average Sold Price is $441,974                                            

Median Sold Price is $380,000                                  

Average Days on Market is 32                                  

Condo:

Sold Homes is 11,335

Average Sold Price is $286,320

Median Sold Price is $238,000

Average Days on Market is 31

Market Facts:

Fall is here and we are seeing the traditional seasonal slowdown in the Denver Metro home market even though it continues to be a destination market and is currently ranked the third hottest home market in the country.  Appraisals are increasing in price, now taking longer time frames, and thus impacting closing dates.  Mortgage interest rates continue to remain low, but may rise soon.  New homes continue to take a long time.  As always, be prepared.

Advice to Sellers:

There is every indication that the Denver home market will see the hottest fall in a decade.  Again it is time as a Seller to continue to focus on the following six (6) items:  (1) stage the yard, (2) clean, clean, clean, (3) remodel or upgrade, (4) de-clutter and stage your home, (5) use professional photographs and videos, and (6) price effectively.  Always remember that as a Seller you need to leave a great lasting impression on all Buyers when they are shown your home.

As a Seller in the current home market, you need to be aware of: (1) appraisals are now taking more time to complete, (2) Buyers are becoming more focused on smart homes, and (3) healthy homes are now a new priority.  Interest rate increases will impact the home market.

Seller preparation 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, 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:

There is every indication that Buyers will see the hottest fall in a decade.  What this means is that the Denver home market will continue to show seasonal signs of leveling off and Buyers will see a slowdown of activity; but, overall the home market will continue to be a destination and a top hot market.  Be prepared to act quickly, create your home buying plan, and stick to it.

Home pricing will remain constant with little or no price appreciation.  Even though mortgage interest rates remain low today, there is every indication that mortgage interest rates will increase in the near future.  What this means is that with an increase, Buyers will be able to borrow less than currently.

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.