Trends for July/August 2012 in Denver Metro Real Estate:
- LOW INVENTORY RISES SLIGHTLY – fewer homes for sale still increasing demand. Currently 10,827 active listings (vs. 10,325 in April). This is still down 38% from 1 year ago
- AVERAGE SOLD PRICE DOWN 3% FROM LAST MONTH….BUT STILL UP 6% FROM July 2011 – Average sold price is $288,884k. We had a quick spike in June/July with prices going up and that has tapered off slightly. However, prices are still up 6% from last July. What does this mean? As I predicted in my last Denver metro real estate market update, 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.
- $200k – $300k Price Most Popular & Highest Sales – This sales price range makes up almost 32% of our sales. Surprisingly, the next highest sales are $300k – $400k! The spike of sales under $200k has slowed but that is likely due to low inventory in those price ranges.
- LOW APPRAISALS KILLING DEALS….BUT BUYERS ARE STARTING TO PAY DIFFERENCE IN CASH – earlier this year they were a big challenge and continue to be one of the biggest challenges in getting home sold here in the Denver metro market right now. With inventory so low, however, we are seeing buyers pay OVER APPRAISED value for a home because there aren’t other homes they like better. Good for sellers….bad for buyers. I wish appraisers would start taking real market conditions into consideration when valuing homes and not use old historic data. In an inclining market they need to use current data! Ok I will get off my soapbox, sorry!
- DAYS ON MARKET DOWN 13% FROM LAST MONTH (NOW 78 DAYS) – and down 28% from last year