Want to know what’s really going on in our Denver Colorado Real Estate market for 2012? Here is my monthly Market Watch so you know what’s going on.
- # HOMES FOR SALE (INVENTORY ) DIPS AGAIN (-3.2%)- in August we saw inventory increase 5% from April (10,325 to 10,827) but it’s going back down. For September there were 10,470 homes for sale which is down 3.2% from August. When comparing to last year at this time, inventory is down a staggering 32%.
WHAT DOES THIS MEAN: Buyers still don’t have many choices for homes that fit their criteria so demand is pushing up home prices (see next section below)
- AVERAGE SOLD PRICE DOWN 1% FROM LAST MONTH….BUT STILL UP 11% FROM September 2011 – Average sold price is $282,305k. We had a quick spike in June/July with prices going up and that has tapered off slightly. Prices continue to actually decline (despite the media saying NOW prices are up….they are about 2 months behind) However, prices are still up 11% from last September so that is what they must be talking about. What does this mean? I still stand behind my prediction that more sellers will likely hit the market as they can sell for the price they are hoping/needing. This likely will happen by spring 2013.
- AVG DAYS ON MARKET = 62 DAYS ( -39% FROM LAST YEAR….- 18% FROM LAST MONTH
- # SOLD HOMES DOWN 15% FROM LAST MONTH…..BUT STILL UP 18% FROM LAST YEAR-ASH – this is an interesting stat. Fewer homes are selling (15% less) from a month ago which is a BIG change. Inventory only dipped 3.2% so that is still ~12% fewer home selling in September than August of 2012. That’s a good sign for sellers. It means the DEMAND of buyers must be decreasing…and this is the factor that has been INCREASING prices. For the number junkies, however, this make sense. We are seeing prices dip 1%….and at the same time….# of sales dipped 3%. They go hand in hand.
IN SUMMARY – WHAT CAN WE EXPECT FOR THE REST OF 2012?
Well our market often slows after Halloween as people start slowing down for winter/holidays/etc. PLUS….what happens this November?????? ELECTIONS!!! So, if you are a home seller, you may see less
demand and a lower price for your home than you did a few months ago. I believe we will see these # of sales, Avg price, and
inventory continue to decline through the Holidays. In spring however, I believe we will see inventory levels rise BIG TIME
because sellers will look at the sales data from 2012 and realize they might be able to get that higher price they have been waiting for.