DENVER REAL ESTATE MARKET UPDATE - JANUARY 2012

By
Real Estate Agent with Denver Homes - The Bandy Team - RE/MAX Pros

 

Market Metrics:

 

The name of the game as we enter 2012 is INVENTORY! Take a look at these numbers for 2011, and you will see many categories were very similar to 2010, but the inventory numbers are the first signs of the changing market!

 

Active Listings inventory continues to decline 13% month over month and 40% year over year.  Under Contract activity and Closed Transactions activity remain at seasonal levels with a continual decline month over month.  The New Year starts with renewed hope that 2012 will be better than 2011 and the indicators are pointing that way.

 

December Monthly Market Recap:

 

Single Family:

Condos:

Active Inventory is 8,854 units at month end

Active Inventory is 2,139 units at month end

Sold units is 2,531

Sold units is 625

Average Days on Market is 107

Average Days on Market is 106

Median Sold Price is $230,000

Median Sold Price is $120,700

Average Sold Price is $275,610

Average Sold Price is $166,420

 

Denver Single Family Closings

December Year-to-Date Market Recap (2011 versus 2010):

 

Single Family:                                                          Condos:

Active Inventory 8,854 versus 13,941 (↓36%)          Active Inventory 2,139 versus 4,316 (↓50%)

Sold Units 31,437 versus 30,777 (↑2%)                   Sold Units 7,950 versus 8,041 (↓1%)

Median Price $230,000 vs $235,000 (↓2%)              Median Price $124,900 vs $136,000 (↓8%)

Average Price $279,858 vs $282,080 (↓1%)             Average Price $159,141 vs $161,005 (↓1%)

Sales Volume $8.8B versus $8.7B (↑1%)                  Sales Volume $1.2B versus $1.3B (↓2%)

Days on Market 105 versus 90 (↑17%)                     Days on Market 116 versus 98 (↑18%)

Days on Market:

By definition, Days on Market is calculated as the number of elapsed days from the original listing date to the status change date.  Therefore if a home is listed for sale on January 2nd and the seller(s) accept an offer on January 22nd, the Days on Market for this property is 21 days at this point in time. 

Days on Market is one of several metrics that are used to follow the market trends.

 

Remember - 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:

 

Welcome to 2012!  What changes can one expect in 2012?

 

The year will start with the lowest inventory of unsold homes in more than a decade.

New home builders will have new models emphasizing efficiency, lifestyle, and a smaller footprint.  For some sellers, this will be competition that has not been seen for several years.

 

External influences will continue to impact the market; such as employment, the economy, and consumer confidence.

 

As a home seller, one must keep in mind that with the beginning of 2012:

  • Housing will be on the minds of many, because lots of people will be seeking housing.
  • Rising rental rates will cause more to look at home ownership.
  • Low rental vacancy rates will cause more to look at home ownership.
  • Historically low mortgage rates will cause more to look at home ownership.
  • Overall, affordable housing prices will cause more to look at home ownership.

Is it a good time for your home to be on the market?  With the incredible low inventory of houses for sale, home sellers should consider putting their home on the market now to avoid more competition later in the spring. Contact me to discuss the options available to sell your home during 2012.

 

Advice to Buyers:

 

The number of active listings, those homes available for sale, continues to be the lowest it has been in years.  Prioritize your needs and wants, look at what is available in the market, and be prepared to be flexible as you look at homes. 

 

The low inventories of houses for sale, especially in the under $300,000 price, will cause prices to increase in the spring and summer, as more buyers hit the market in the traditional heavy buying season.

 

Total single family homes sold in 2011 was up 2% from 2010, which reversed a trend of declining sales for the first time since 2005.

 

Rents continue to rise in the Denver market as the inventory of rental properties remains tight.

 

Talk to me today about your Lifestyle Preferences, the benefits of home ownership, and home affordability.

 

Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.

 

Marianne Bandy

 

Denver Relocation

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