Want to know what’s really going on in our Denver Colorado Real Estate market for 2012? Here is my monthly Market Watch so you know what’s going on.
Trends for November/December 2012 in Denver Metro Real Estate:
- # HOMES FOR SALE (INVENTORY ) DROPS HUGE FOR THE HOLIDAYS (8,847 homes for sale)
(-9% FROM NOVEMBER)– in October we saw inventory drop -3.2% and there were 10,470 homes for sale. For December 2012 there are now only 8,847 homes for sale which is down almost 10% from last month. This may seem like a normal dip due to the Holidays, BUT when comparing to last year at this time, inventory is down a staggering 29%.
WHAT DOES THIS MEAN: Buyers still don’t have many choices for homes that fit their criteria so demand is pushing up home prices (see next section below)
- AVERAGE SOLD PRICE UP 2.6% FROM LAST MONTH….AND UP 13.35% FROM November 2012 – Average sold price is $285,664. We had a dip in the early fall and they actually dropped 1% in August, but now they are screaming upwards. What does this mean? I still stand behind my prediction that 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.
- AVG DAYS ON MARKET = 70 DAYS ( DOWN 30% FROM LAST YEAR….UP 6% FROM LAST MONTH)
- # SOLD HOMES DOWN 10% FROM LAST MONTH…..BUT UP 30% FROM LAST YEAR- So check this out. Inventory dropped 10% from last month and the # of Sold Homes also dropped 10%. To me this means that the market is maintaining itself as we come into the Holiday season. Often the # of sold homes decreases even more than inventory, leading to a glut of homes for sale after the New Year. This doesn’t appear to be the case this time.
IN SUMMARY – WHAT CAN WE EXPECT FOR THE REST OF 2012?
Well, the big indicators are rising prices and change in # of sold homes is right on pace with the decrease in homes for sale….both 10%. To me this means we are poised for a strong spring season because we won’t have the glut of inventory we often see coming out of the New Year. In spring, inventory levels rise BIG TIME as sellers see they can get closer to the selling price they desire. The big question is what will the buyer level be? Will the demand increase as fast as inventory levels? We will see. New Home builders think so as they are all scrambling to build as fast as they can. We will see if they are right. My guess – as long as rates stay low (which I believe they will) the demand will be there. BUT…inclining prices may create a slow down come mid year as the market starts to correct.
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