Denver Real Estate Market Update May 2012
GREATER METROPOLITAN DENVER MARKET UPDATE
MAY, 2012
Market Metrics:
With April, the preview month of the prime home selling/buying season, behind us, what an amazing home market. The inventory of homes for sale remains relatively stable at 10,254 homes available on the market.
The limited inventory comes as more buyers are shopping for homes, driving prices up, and multiple offers becoming the norm. We are starting to see a steady price appreciation. Denver is now considered one of the strongest markets in the country.
Monthly Market Recap:
Single Family:
Active Inventory is 8,353 units at month end
Sold units is 3,133
Average Days on Market is 90
Median Sold Price is $249,900
Average Sold Price is $298,712
Condos:
Active Inventory is 1,901 units at month end
Sold units is 758
Average Days on Market is 91
Median Sold Price is $142,000
Average Sold Price is $178,231
April Year-to-Date Market Recap (2012 versus 2011):
Single Family:
Active Inventory 8,353 versus 13,874 (↓40%)
Sold Units 9,879 versus 8,756 (↑13%)
Median Price $233,000 vs $221,000 (↑5%)
Average Price $283,682 vs $272,339 (↑4%)
Sales Volume $2.8B versus $2.4B (↑18%)
Days on Market 100 versus 116 (↓14%)
Condos:
Active Inventory 1,901 versus 3,973 (↓52%)
Sold Units 2,452 versus 2,267 (↑8%)
Median Price $128,000 vs $120,000 (↑7%)
Average Price $163,787 vs $156,709 (↑5%)
Sales Volume $402M versus $355M (↑13%)
Days on Market 98 versus 125 (↓22%)
APRIL, 2012 YTD HOME TRENDS:
The top three price ranges for sold Single Family homes are:
(1) $100,000 to $199,999
(2) $200,000 to $299,999
(3) $300,000 to $399,999
The top three price ranges for sold Condo homes are:
(1) $100,000 to $199,999
(2) $0 to $99,999
(3) $200,000 to $299,999
Advice to Sellers:
The national home ownership rate reached a decade low of 62%, down from 73% in 2006 and 2007. Much of the decline is the result of the economy, foreclosures, job losses, fallen home values, and more. Americans continue the thirst for home ownership and in a recent survey over 70% of the respondents desire home ownership and also feel that now is a good time to buy.
The inventory of homes for sale remains low and the number of buyers increases daily. Now is the time to make sure the home is ready to be on the market. Do your homework, check out the competition, take care of all deferred maintenance items, and remodel as necessary.
Sellers can improve their chances of getting a house sold by sprucing up the inside and out such that the home will create that lasting first impression.
Is it a good time for your home to be on the market? As Real Estate is local, contact your RE/MAX Professional to discuss the options available to sell your home during 2012.
Advice to Buyers:
By the numbers, there are 10,200 plus homes available for sale, 5,600 offers were extended and accepted by both the seller and the buyer in April, and 3,100 homes closed in April. Why are things getting so competitive? The inventory of homes available for sale last April was 18,000 homes. The drastic decrease in the number of homes for sale is leaving home buyers with fewer options sometimes resulting in bidding competition.
Now is the time for the Buyer to be prepared. Here is a list of things to consider when preparing for homeownership: decide what you can afford, develop your home wish list, select where you want to live, start saving, get your credit in order, determine your mortgage qualifications, get preapproved, weigh the sources of your down payment, and calculate the costs of homeownership. Additionally, a buyer should consider zoning and remodeling rules when looking to purchase a home.
