In my last market report I said the market was SHAKIN’! The status should be officially upgraded to BAKIN’! Low inventory and rising prices continue to be the leading trends through March. Here’s my April 2013 Denver Metro Market Watch so you know what’s going on. Data is through March 2013.
Trends for Feb/March 2013 in Denver Metro Real Estate:
# HOMES FOR SALE (INVENTORY ) CONTINUES TO DECLINE – DOWN 1.5% From Last Month & 35% FROM LAST YEAR (6,682 NOW vs 7,094 in Jan 2012)
- WHAT’s TRENDING: We just aren’t seeing the rush of spring sellers like we have in the past. I expected that by March more sellers would finally start hitting the market but they aren’t.
- WHAT DOES THIS MEAN: The market continues to be more favorable for sellers but can be frustrating & emotional for buyers. Often buyers are making several offers before getting one accepted and competing with other buyers for the same home.
- TIPS FOR SELLERS: Make sure buyers are serious. Sometimes they are bidding on EVERY home just to keep their options open. Make sure they are serious before entering into a contract and then the buyer backs out.
- TIPS FOR BUYERS: Make your highest and best offer FIRST….don’t make an offer planning on a counter or negotiation. If it’s priced well and in good condition….other buyers want it too!
AVERAGE SOLD PRICE UP 6% FROM LAST MONTH & 14% FROM LAST YEAR….(it was DOWN 5% last month so that’s effectively an 11% increase from two months ago)
- WHATS TRENDING: Average sold price is $295,330. It was $275,000 in January)
- WHAT DOES THIS MEAN: In February I wrote: “It’s more inconvenient to move around the Holidays and if people don’t HAVE to sell they don’t. People that usually HAVE TO sell are in the lower priced homes so that is my personal opinion for why this dropped in January. I think for Feb/March stats we will see a HUGE jump in this average sales price. ” ——————————- Well, this came true and we are seeing a HUGE spike. I believe this will continue through the summer at least. Then we will see if more homes come on the market which will start to slow price growth. Only time will tell!
AVG DAYS ON MARKET DOWN BIG TIME= 67 days (DOWN 16% FROM LAST MONTH & 34% FROM LAST YEAR)
- This stat is skewed. New listings that are priced well are selling in about 7 days. Then the overpriced listings and short sales etc are taking 60+ days to close. If you are priced well it will sell quickly. If you are WAY over priced, however, buyers still aren’t pulling the trigger on yours. They have learned from the previous crash and don’t want to be “upside-down”….plus appraisers are still being conservative on the values and limiting how much a lender will loan on a home regardless of how much a buyer will pay.
# SOLD HOMES UP 46% FROM LAST MONTH & 24% FROM LAST YEAR
- Comparing last year…….Active homes are still down DOWN 35% and Sold Homes are UP 25%, which is madness! Fewer homes for sale but yet MORE are selling. No wonder buyers are feeling a pinch and new home builders are seeing record # of contracts/sales/deposits.
WILDCARD – ONE THING TO WATCH FOR:
This month it’s interest rates. They are getting a bit squirelly and I have seen them back up in the high 3’s. I know historically that is still a fantastic rate, but as rates go up, buyer’s buying power goes down. If rates keep climbing buyers will have to buy less expensive homes which will slow the market growth we are seeing.We shall see…!
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