Home > Blogs > Colorado > Denver County > Denver > METRO DENVER REAL ESTATE MARKET UPDATE OCTOBER 2012 
41,626 views

Marianne Bandy's Denver Homes Blog

Items of Interest to Buyers & Sellers of Denver Real Estate

By Marianne Bandy | Broker in Parker, CO

METRO DENVER REAL ESTATE MARKET UPDATE OCTOBER 2012

                         

Overview:


The quick story of this market is a nearly 20% increase in units sold this year, but the bigger story is the lack of inventory of homes for sale! Inventory for SF homes is down 31% from a year ago.


By the numbers, the inventory of available homes for sale is 10,470 homes at month end.  4,457 homes were placed under contract, and 3,949 homes closed, for a closed dollar volume of $1.1 billion.  Compared to a year ago, SF home sales are up 18%, median price is up 9%, average days on market for listings is down 25%


The outlook for the remainder of the year looks good as we continue through the fall season.  Traditionally, this means fewer transactions each month.


Monthly Market Recap: (see graphs at end of article)


Single Family:                                                            Condos:
Active Inventory is 8,700 homes at month end          Active Inventory is 1,770 homes

Sold homes is 3,147                                                    Sold homes is 802

Average Days on Market is 64                                   Average Days on Market is 64

Median Sold Price is $255,000                                   Median Sold Price is $147,500

Average Sold Price is $306,633                                  Average Sold Price is $186,843



September Year-to-Date Market Recap (2012 versus 2011):


Single Family:                                                            Condos:

Active Inventory 8,700 versus 12,613 (↓31%)           Active Inventory 1,770 versus 2,920 (↓39%)

Sold Units 28,218 versus 23,956 (↑18%)                   Sold Units 6,894 versus 6,024 (↑14%)

Median Price $250,000 vs $229,970 (↑9%)                Median Price $140,000 vs $124,900 (↑12%)

Average Price $302,809 vs $281,782 (↑7%)              Average Price $176,961 vs $158,761(↑11%)

Sales Volume $8.5B versus $6.7B (↑27%)                 Sales Volume $1.2B versus $956M (↑28%)

Days on Market 79 versus 106 (↓25%)                       Days on Market 81 versus 120 (↓33%)


September Market Facts:


Days on market is down because 52% of the listings went under contract in 30 days or less.

The most frequently used forms of financing, in order, are Conventional, FHA, and CASH.

CASH is the number two form of financing for Condos.

Rents continue to rise, rental unit availability is low, and home affordability remains high.

Absorption ratio is 2.8 months for Single Family and 2.4 months for Condos. This means we are definitely in a sellers market below the $500K price point!


Real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.

 

 

Advice to Sellers:


The fall buying season is not as robust as the spring season due to different buyer motivations.  There is a higher ratio of first time homebuyers and childless couples, a motivation to be in the new home by the start of the holidays, and a motivation to be in the new home by the end of the year to utilize tax benefits this year.  First timers are changing the face of the market again.  More first time home shoppers say the want a home they can “grow into” not a home they can quickly grow out of.  With high home affordability and low interest rates, this is now possible.


According to recently released information, the top three categories of fall season buyers are first timers, move up, and right sizing buyers.  Additionally, it has been reported that buyers now expect to stay in homes 15 years compared to 10 years.


Traditionally, the number of available homes decreases during the fall buying season.


As a seller, take an objective look at your home ~ from the curb, at the front door, inside the home, at the back door, looking out to the back yard, looking out to the front yard. What is memorable about your home and what home buyer will your home attract?  Would you buy your home if you were shopping today?


Real Estate is always local, contact me to discuss the options available to you.



Advice to Buyers:


The fall home buying season is here. So what does that mean to the home buyer?  In summary, the number of available homes will decrease as we move to the end of the year, lifestyle motivation will be the driving force of the market, rental availability will be minimal, home affordability will remain high, mortgage interest rates are expected to stay low. The time a home is available (days on market) will remain in the 60-plus day range, loan pre-approval is a must, and “Be Prepared to Act Quickly” should be the home buyer’s motto.   If you want to think about it, you may not sleep in it!


How a Buyer prepares for home ownership is important, as the home is the emotional center of our lives, and it remains a critical component of one’s self. 


Take advantage of home affordability this fall. Let the professionals at the Bandy Team help you buy or sell your Denver home. If you’re thinking about buying a home in Denver, we can show you some terrific homes in Stapleton, properties in Cherry Creek or the charm of real estate in Lowry.


Give me a call to get the process started..

 

Until Next Time,

Marianne Bandy





POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer