Curious what the Denver/Boulder/Front Range real estate market is doing? Let’s take a look! Like I always say, forget the media reports…let’s look at some real numbers for spring 2011 so far. So notable indicators are:
1. Average Days on Market is UP about 33% from last year. It takes about 120 days to get a home sold now compared to ~ 90 days a year ago. WHY? I believe it’s due to fewer buyers than last year. We had the tax credit last year and it had an expiration date, so buyers were anxious to find a home and close on it to get the credit. This year there is less motivation with buyers. In addition, it is harder to qualify for a loan so fewer buyers can purchase.
2. 9% Fewer Homes Have Sold This Year Compared to Last – Bottom line. Fewer homes are selling. Why? I think it’s due to the fact above that there are fewer buyers.
3. New Listings are DOWN 14% – This means less sellers went on the market this spring compared to last. Why? I think they are waiting for their home values to improve and only people that HAVE to move are listing their home. Fewer sellers are “trying” the market.
4. ACTIVE Homes For Sale are up 14% from Last Year – While fewer sellers went on the market this March compared to last, looking at the total inventory on the market right now, it is UP 14% from last year. Why? Well the time it takes to sell a home has increased as we saw above, so each month more and more homes are added to the inventory of homes for sale. Hence, it’s now 14% higher than last year.
5. Average Sold Price is UP almost 1% from Last Year (and last year was up 11% from the year before). So, you could also say HOME PRICES ARE UP 12% from 2009. This is a good thing! Matter of fact, it’s a great thing. As sold prices continue to increase, more people will be able to sell and move up to other homes, hence creating a greater buyer pool (demand). As demand increases, prices will increase further, sold prices will too, and the market will be a “good” market again. I’m optimistic that we will see this trend happen by next spring. Some areas are already seeing it now such as Boulder and parts of Boulder County.
For my number folks – here are some pretty charts! Enjoy!