December 2011
Market Metrics:
The unsold inventory of active listings hit a new low at 14,156 units, the second month in a row for setting a new low record. As we are moving into new territory, there is steady demand and low inventory. When one compares our housing market to the nation, Denver continues to hold its own.
Monthly Market Recap:
Single Family: Condos:
Active Inventory is 11,504 units at month end Active Inventory is 2,652 units at month end
Sold units is 2,482 Sold units is 701
Average Days on Market is 102 Average Days on Market is 102
Median Sold Price is $226,021 Median Sold Price is $125,000
Average Sold Price is $269,503 Average Sold Price is $160,723
October Year-to-Date Market Recap (2011 versus 2010):
Single Family: Homes
Active Inventory 11,504 versus 16,473 (↓30%) Active Inventory 2,652 versus 4,887 (↓46%)
Sold Units 26,438 versus 26,213 (↔) Sold Units 6,725 versus 6,915 (↓3%)
Median Price $229,820 vs $230,000 (↔) Median Price $125,000 vs $133,500 (↓6%)
Average Price $280,629 vs $282,819 (↓1%) Average Price $158,965 vs $160,186 (↓1%)
Sales Volume $7.4B versus $7.4B (↔) Sales Volume $1.0B versus $1.1B (↔)
Days on Market 106 versus 87 (↑22%) Days on Market 118 versus 93 (↑27%)
With the holiday season upon us, we continue to see a steady demand for housing. At a time like this, one needs to take into consideration employment, consumer confidence, and mortgage interest rates. Mortgage interest rates continue to remain low. Consumer confidence continues to improve, albeit slow. Employment is a focus that is on everyone’s mind and definitely a conversation item on a daily basis.
Advice to Sellers:
Today’s home buyer is looking for his or her dream. What does this mean to you the home seller? Well first of all, the home buyer is looking for a home that meets 100% of the home buyer’s expectations. The home buyer wants to move into his or her new home and have to do nothing but enjoy the home.
Therefore, deferred maintenance needs to be non-existent. The usual list of maintenance items such as painting and carpeting now also include updating the entire home. Should you consider updating the bathrooms or the kitchen? Talk to a RE/MAX Professional about a cost benefit analysis of updates. The RE/MAX Professional will be able to advise you on how much a buyer would be willing to pay for the updates in the purchase price of the home.
Learn the value of updates as they relate to the pricing of your home.
Advice to Buyers:
The number of active listings, those homes available for sale, continues to decreases. Caution is the theme, with caution rising along with the price point. What does this mean to you?
Manage your expectations by determining what you want in a home, what you can afford in a home, what are your lifestyle priorities, and does home ownership allow you to achieve your personal goal.
Advice to INVESTORS:
Investors continue to be a strong force in the market. There are MANY good opportunities if your goal is to invest in your future through real estate. As a specialist with real estate investors, it's time to let you in on a secret.... people are making GREAT money in the real estate market as investors!!
39% of foreclosures in the banking industry are still in 'shadow inventory'. This means that these homes are sitting with the banks and not released yet into the market for a variety of reasons---it also means that it is NOT too late to become an investor. Recent studies have found there are 2-3 MILLION homes sitting in shadow inventory.
Of the investors out there, 65% of them are holding on to the homes for rental purposes. Why? The rental market in Denver is booming and owners/landlords are seeing a fantastic return on their investments.
Hook up with a real estate agent that knows the market. Learn about the investment real estate game. Most importantly, JUMP IN while market is low and you can make very profitable long term and short term gain!
Good buying and good selling!
Laura
303-906-8455
