September 2016 ~ 7 County Metropolitan Denver Market Update

 

Posted by Damon L. Chavez on Friday, September 16th, 2016 at 9:34am.

Market Metrics:

By the numbers, the inventory of available homes for sale is 6,722 homes at August month end, 6,169 homes came onto the market, 5,350 homes went under contract, and 5,151 homes closed at a median sold price of $350,000 and an average sold price of $401,168 resulting in a closed dollar volume of $2.07 Billion. 

Monthly Market Recap:

Single Family:                                                             Condo:          

Active Inventory is 5,281                                          Active Inventory is 1,441      

Sold Homes is 3,685                                                   Sold Homes is 1,466              

Average Price is $446,596                                          Average Price is $286,978

Median Price is $380,000                                           Median Price is $241,750

Average Days on Market is 28                                   Average Days on Market is 25                       

 

Year To Date Market Recap:

Single Family:                                                             Condo:          

Sold Homes is 25,123                                                 Sold Homes is 9,956  

Average Sold Price is $442,074                                 Average Sold Price is $286,217           

Median Sold Price is $380,000                                  Median Sold Price is $237,500

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

Source:  REcolorado.com – September 7, 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:

The Denver Metro home market continues to be a destination market and is currently ranked the third hottest home market in the country.  August is now a month of seasonality as the school season has started and even though buyers are still in the market, overall activity has slowed.    Appraisals are now taking longer time frames and thus impacting closing dates.  Mortgage interest rates continue to remain low, but may rise soon.  As always, be prepared.

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

Advice to Sellers:

With the number of active listings and the number of homes sold lower than in the prior month, the Denver home market is entering the fall season.  It is time as a Seller to continue to focus on the following six (6) items:  (1) stage the yard, (2) clean, clean, clean, (3) remodel or upgrade, (4) de-clutter and stage your home, (5) use professional photographs and videos, and (6) price effectively.  Always remember that as a Seller you need to leave a great lasting impression on all Buyers when they are shown your home.

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, and (3) healthy homes are now a new priority.

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:

The Denver home market continued to show signs of leveling off and preparing for the upcoming fall season.  We will see a slowdown of activity; but, overall the home market will continue to be a destination and a top hot market.  Be prepared to act quickly, create your home buying plan, and stick to it.

Even though mortgage interest rates remain low today and the wave of refinancing continues to increase, there is every indication that mortgage interest rates will increase in the near future.  What this means is that with an increase, Buyers will be able to borrow less than currently.

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.

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