What a whirlwind! Here’s my July 2013 Denver Metro Market Watch so you know what’s going on. Trends for July 2013 in Denver Metro Real Estate:
# HOMES FOR SALE (INVENTORY ) UP 12% FROM MAY (Still Down 16% FROM LAST YEAR) (9,187 NOW vs 8,214 in May)
- WHAT’S TRENDING: Inventory has trended upwards for 2 straight months now but is still very low compared to the norm. 5,566 homes sold in June alone which means we have LESS than 2 months inventory right now.
- WHAT DOES THIS MEAN: Whenever inventory is below 4-5 months it favors sellers. The longer inventory stays low the more it weighs in their favor.
- 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 3% FROM LAST MONTH AND UP 7% FROM LAST YEAR
- WHATS TRENDING: Average sold price is $318.541. It was $275,000 in January 2013. That’s a BIG jump for the first half of this year!
- WHAT DOES THIS MEAN: Prices actually dropped about 2% from April to May….but now they are increasing again. I believe this is due to the length of time we are having low inventory levels. Eventually buyers have to buy and end up paying a premium to beat out other buyers for the home they want.
AVG DAYS ON MARKET CONTINUES TO DROP! NOW= 43 days (DOWN 10% FROM LAST MONTH & 40% FROM LAST YEAR)
- My opinion is that this stat is STILL 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 DOWN 1.75% FROM LAST MONTH BUT STILL UP 13% FROM LAST YEAR
- This is a big stat to watch. As fewer home sell each month (if this trend continues), the more inventory we will have. The more inventory we have, the less competitive it is for buyers, which means prices stop increasing. This is an indication that buyer DEMAND is decreasing slightly…..but can also be attributed to deals falling through. For example, a buyers loan falls through, the appraisal doesn’t come in at the needed value, etc. I will keep my eye on this through the rest of the summer to see what this trend is REALLY telling us.
INTEREST RATES: I mentioned last month that interest rates are the wildcard. Well….they are rising. Check out my post I just wrote this month on interest rates.
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