GREATER METROPOLITAN DENVER MARKET UPDATE
FEBRUARY, 2013
Market Metrics:
By the numbers, the inventory of available homes for sale is:
- 7,094 homes at January month end
- 4,383 homes came onto the market
- 4,431 homes were placed under contract
- 2,953 homes closed for a closed dollar volume of $811 Million.
For all appearance purposes, the Denver home market continues to show its strength as new records were set this month.
Monthly Market Recap:
Single Family:
Active Inventory is 5,834 homes at month end
Sold homes is 2,343
Average Days on Market is 80
Median Sold Price is $250,000
Average Sold Price is $301,827
Condos:
Active Inventory is 1,260 homes
Sold homes is 610
Average Days on Market is 70
Median Sold Price is $140,050
Average Sold Price is $170,769
January Year-to-Date Market Recap (2013 versus 2012):
Single Family:
Active Inventory 5,834 versus 8,356 (↓30%)
Sold Units 2,343 versus 1,993 (↑18%)
Median Price $250,000 vs $218,855 (↑14%)
Average Price $301,827 vs $272,328 (↑11%)
Sales Volume $707M versus $543M (↑30%)
Days on Market 80 versus 103 (↓22%)
Active Inventory 1,260 versus 2,087 (↓40%)
Sold Units 610 versus 477 (↑28%)
Median Price $140,050 vs $113,000 (↑24%)
Average Price $170,769 vs $146,544(↑17%)
Sales Volume $104M versus $70M (↑49%)
Days on Market 70 versus 108 (↓35%)
January Market Facts:
At January month end, the inventory of homes available on the market @ 7,094 homes reached a new low since January, 1990. With this in mind, the Month’s Supply of Inventory is 1.87 months for Single Family and 1.63 months for Condos. Month’s Supply of Inventory is calculated by taking the last twelve months homes sold numbers and calculating an average. This number is then divided into the month end inventory to produce the Month’s Supply of Inventory.
Advice to Sellers:
The first impression counts. With that being said, curb appeal is important in order to attract buyers. Consider exterior improvement projects that will win the buyer’s eye and provide you the seller with a greater return on your investment.
When looking at home improvement projects that will help you the seller sale your home, following is a list of the top projects that provide a greater return on the investment: replacement steel entry door, garage door replacement, kitchen remodel (either minor or major), basement remodel, and roofing replacement. Home improvements can increase the home’s value.
Women are a big part of the housing market and a recent survey indicates that women want big closets, a great kitchen, a great location, a comfortable place in the home for socializing, low maintenance, and a two car garage.
Buyer demand continues and the inventory of homes available for sale is at an all time low. While this can be portrayed as a “seller’s market”, each and every home is unique which suggests professional assistance in selling the home.
Advice to Buyers:
It has been said before and it needs to be said again, be prepared. The inventory of available homes is the lowest it has been since 1990 and buyer demand remains strong and constant.
Determine what you want and your priorities. Run the numbers and put together a financial plan. Mortgage interest rates remain low; but, loan qualification requirements have not changed. Talk to a mortgage loan originator to learn what you can qualify for. Determine where you want to live, your lifestyle preferences, and your home preferences. Be an informed buyer.
