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October Quick Stats
Denver Metro Single Family Housing Stats:
Active Listings: 8,108
- Down 30% from Oct. ‘11
Under Contracts: 3,664
- Up 19% from Oct. ‘11
Sold: 3,246
- Up 31% from Oct. ‘11
Average Price: $304,237
- Up 13% from Oct. ‘11
Average Days on Market: 67
- Down 34% from Oct. ‘11
Denver Metro Condo Housing Stats:
Active Listings: 1,611
- Down 39% from Oct. ‘11
Under Contracts: 960
- Up 24% from Oct. ‘11
Sold: 849
- Up 21% from Oct. ‘11
Average Price: $179,803
- Up 12% from Oct. ‘11
Average Days on Market: 61
- Down 40% from Oct. ‘11
Real Estate News
The metro Denver real estate market continues its incredible recovery, leaving our downturn a distant memory. Consider these facts:
- The inventory of homes for sale is down 30% in the past 12 months.
- The number of sold homes is up 11% in the past 12 months.
- The average Days on Market is down 34% in the past 12 months.
- The average price of a home is up 13% in the past 12 months.
Let’s take a look at historical home prices to highlight the turnaround. The graphic shows metro Denver residential home prices by month for the past seven years. Look specifically at the line for 2012. What you see is a stunning rise in prices starting in February of this year and continuing through today.
Starting in March, home prices began leaping upward and have not stopped since. In September, something happened that has not occurred since 2007. For the first time in five years the average price of a metro Denver home exceeded the prices we hit at the top of the market back in 2007! This is a stunning comeback for our market which is leading the nation in a number of factors. Please give me a call if you want to discuss how you can take advantage of this market!
Metro Denver Home Buyers
Everyone knows how great the metro Denver real estate market is doing right now. Inventories are at record lows, prices are up sharply, and multiple offers are again the norm. But some of the people I talk to believe this is just a Denver phenomenon and are still fearful because they think that since the rest of the country is still suffering Denver might quickly slip back into a bad market. Nothing could be further from the truth.
Just look at the titles of the articles I’ve read in just the past week: “Survey: Americans More Upbeat About Housing”, “More Evidence That Home Prices Have Hit Bottom”, “US Housing Update: Shrinking Inventories”, “Housing Market Turns Corner; U.S. Home Values Post First Annual Increase In Nearly Five Years”, “Housing Market Displays New Vigor as Prices Rise”, “Solid Improvements in Housing Prices”.
What we’re experiencing is a nationwide recovery– Denver just happens to be leading the charge! This national recovery is exactly what one would expect after the sustained downturn we experienced. How long will it last? No one knows for sure but market cycles historically last 7-10 years. Since we’re in just the first couple of years of our recovery there is every reason to believe we are going to see strong prices and appreciating markets for years to come. Call me so I can help you take advantage of it.
Metro Denver Home Sellers
If you own a condo you should be very happy, because the condo market is extremely strong right now. In 2011, the average price of a condo in metro Denver went up 16%. Incredibly, prices are up another 18% so far in 2012. The inventory of condos for sale is at a record low of 2.4 Months of Inventory (MOI), where a balanced market would have 6 MOI. I have folks looking for condos, so if you’re considering selling yours let me know so I can bring you some qualified buyers.
Metro Denver Real Estate Investors
Are you an investor waiting for the bottom of the market before you buy a property? I hope not, because we are well past the bottom. This graph shows that the price/unit for 2+ unit investment properties is up an incredible 18% already in 2012. And because of the lack of inventory there is every reason to think the prices will continue to rise. Call me if you want to know how you can take advantage of this.
RE/MAX Alliance in the News
As always, I’d like to take a moment and say thank you for giving me the opportunity to work with you. Every client is special to me and it’s a pleasure and a privilege to serve your real estate needs. RE/MAX Alliance is one of the only real estate companies in town that actually increased their business during the downturn and it’s because of clients like you that we were able to do so. Because I have the tools, data, and experience to help you, this year our business was up another 23% over last year, surpassing $500,000,000 in total sales volume. Always feel free to contact me anytime if you have any questions or thoughts about the real estate market. I love to talk about it!
Mortgages
Mortgage rates are continuing to stay at the lowest points in history and it remains a great time to buy. The mortgage market continues to remain strong with historically low interest rates. Low rates combined with low home inventory are making this a great time to sell your home and move up to a larger home with the same or lower monthly payment. We have several recent examples of clients selling their current homes and getting in to a $40,000 – $50,000 more expensive home with the exact same monthly payment. Please give me a call or send me and e-mail and I’ll do a free analysis to see if this might be a good scenario for you to take advantage of.
Neighborhood Spotlight
As with many Denver neighborhoods, Harvey Park seems to be well past the bottom of the market. The eastern part (Sheridan to Federal, Jewell to Yale) had an average price of $151,000 over the past 12 months. 57% of the listings are under contract! On September 30, there were only 22 active listings, and 64 homes sold in the last year. It’s a strong seller’s market. Prices are up about 4% in the last year, and the typical listing took only 62 days to go under contract.
The western part of Harvey Park (Federal to Wadsworth) had an average price of $276,000 in the past year. Prices are roughly flat over the prior 12 months. 38% of the listings are under contract. It’s not as strong of a sellers’ market as eastern Harvey Park, but it’s pretty close. On September 30, there were 11 active listings and there were 39 sales in the past 12 months.