November 2016 ~ 7 County Metropolitan Denver Market Update

 

Posted by Damon L. Chavez on Tuesday, November 22nd, 2016 at 9:56am.

Market Metrics:

By the numbers, the inventory of available homes for sale is 6,235 homes at October month end, 4,657 homes came onto the market, 4,628 homes went under contract, and 4,475 homes closed at a median sold price of $349,900 and an average sold price of $397,611 resulting in a closed dollar volume of $1.779 Billion. 

Monthly Market Recap:

Single Family:                                                               Condo:          

Active Inventory is 4,799                                    Active Inventory is 1,436      

Sold Homes is 3,162                                             Sold Homes is 1,313              

Average Price is $442,934                                  Average Price is $288,462

Median Price is $380,000                                   Median Price is $241,700

Average Days on Market is 34                           Average Days on Market is 30                       

Year To Date Market Recap:

Single Family:                                                               Condo:          

Sold Homes is 31,951                                           Sold Homes is 12,811

Average Sold Price is $441,735                          Average Sold Price is $286,100           

Median Sold Price is $380,000                           Median Sold Price is $239,000

Average Days on Market is 32                            Average Days on Market is 31

Source:  REcolorado.com – November 8, 2016

The above representation for Single Family and Condo includes real estate activity in the counties of Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, and Jefferson.

Market Facts:

October was a very interesting month in the Denver home market as we saw an increased seasonal slowdown that was not only impacted by the time of year; but, also by the current election cycle.  Thankfully the election is over and now we all can focus on our priorities.  Active listings at month end have decreased as well as closings.  The Denver home market will continue to see a seasonal adjustment.  As always, Buyer or Seller be prepared.

Real estate is local.  While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.

Advice to Sellers:

Sellers, Buyers today continue to be more educated on the Denver home market.  We are in a slower time of year as traditionally the 4th Quarter relates to less home closing transactions per month than in the previous months of the year.  With fewer homes available for sale, Sellers need to know where they want to live and have a plan that will allow the Seller’s home to sell.

As a Seller in the current home market, you need to be aware of: (1) appraisals are now taking more time to complete, (2) Buyers are becoming more focused on smart homes, (3) renovated and energy efficient homes are a priority, and (4) healthy homes are now a new priority.  Interest rate increases will impact the home market even though home price appreciation remains low.

Seller preparation includes a good pricing comparison analysis, instructions on staging, what are the top improvements, introduction to a net sheet to understand the bottom line, and a conversation on how the market functions.  As such, the homeowner looking to sell a home needs a professional who is a local expert, is hyper local market knowledgeable, and can assist in the Professional plan to sell one’s home.  Now is the time to reach out to a Professional.

Advice to Buyers:

November is considered to be yet another great month for Buyers.  This is because the prime home buying season has passed, the number of Buyers in the Denver home market will be fewer than the previous month, home prices are not increasing as fast as they have in previous months, and there are fewer homes available than in prior months.  Be prepared to act quickly, create your home buying plan, and stick to it.

Home pricing will remain constant with little or no price appreciation, mortgage interest rates remain low today, even though there is every indication that mortgage interest rates will increase in the near future, and Sellers will be open to multiple offers.

Know what you want in a home, where you want to live, and what price range you can afford.  Complete the pre-qualification process so you know the price range that you qualify for when you are purchasing a home.  Be prepared, manage your expectations, and be open to looking at the entire Denver market.  Reach out to a Professional today about your best options and opportunities to participate and succeed in the purchase of your “Dream” home.

CALL ME TODAY!