2009 was quite a year as you well know. In the Denver real estate market we saw a HUGE change. This first chart shows NEW listings added to the market for ALL of 2008 vs 2009. In 2009, the Denver Metro MLS had 15.6% LESS homes for sale than the previous year.
The chart below to the right (blue) shows MLS data as of January of this year 2010. The main things to notice are:
# of Homes For Sale Still Down (11.56 %)
What this means: Less homes for sale means less competition for sellers…and fewer options for buyers….which typically is followed by increases in sales price. Expect prices to improve later this year
What this means: Well it’s pretty self explanatory…it means the average home sales price is going UP in Denver. Combine that with the DECREASE in Days on Market and you have multiple signs the market is improving.
Pending Sales UP 15% in January!!
What this means: This means that the Denver real estate market will show some serious improvements in February and March as these “pendings” start closing. I personally believe that with interest rates and home prices low but threatening to increase, and the tax credit expiring, that we will see a record 1st and 2nd quarter of 2010. I know for me personally I am working with a ton of buyers and sellers looking to capitalize on this market before it goes up!
Final words from the front lines from Mike…
- Multiple offers are very common for homes under about $175k
- For investors buying homes under that $120k range….multiple offers are common but also sales prices above asking price. Make that bid competitive and if you want to win, take out those concessions. Banks don’t like investor offers that ask for closing costs.
- For move up sellers, now is the time to move. Home prices are going to start to increase and so are interest rates. This means that it will be harder and harder to afford a bigger or more expensive home shortly so now is the time for move up sellers.
I hope this is insightful and if you have any questions about the Denver Real Estate Market just give me a shout either via chat above, email, or phone.