August 2016 ~ 7 County Metropolitan Denver Market Update

 

Posted by Damon L. Chavez on Tuesday, August 23rd, 2016 at 11:40am.

Market Metrics:

By the numbers, the inventory of available homes for sale is 6,858 homes at July month end, 6,449 homes came onto the market, 5,158 homes went under contract, and 4,942 homes closed at a median sold price of $350,000 and an average sold price of $408,372 resulting in a closed dollar volume of $2.02 Billion. 

Monthly Market Recap:

Single Family:                                                           Condo:          

Active Inventory is 5,413                                           Active Inventory is 1,445      

Sold Homes is 3,542                                                   Sold Homes is 1,400              

Average Price is $457,388                                          Average Price is $284,361

Median Price is $388,000                                           Median Price is $242,000

Average Days on Market is 25                                   Average Days on Market is 22                       

Year To Date Market Recap:

Single Family:                                                           Condo:          

Sold Homes is 21,329                                                 Sold Homes is 9,076  

Average Sold Price is $441,675                                 Average Sold Price is $286,074           

Median Sold Price is $380,000                                  Median Sold Price is $236,400

Average Days on Market is 33                                   Average Days on Market is 32

Source:  REcolorado.com – August 4, 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 July home market changed from June.  July is now the month most popular for vacations and active listings stay on the market longer due to less focus on the home hunt and more focus on family time, birthdays, etc.  Multiple offers have slowed down and the July showings have decreased.  Appraisers are now impacting closing dates.  Mortgage interest rates continue to remain low.  New home builders are changing their products.  As always, be prepared.

Advice to Sellers:

The Denver Seller’s market is showing a slowdown in July and Buyer’s were more focused on vacations and family activities.  With sales slowing and the inventory of active listings reaching its seasonal peak, the Denver home market is changing.  It is time as a Seller 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.  Home builders are now changing their product line; so, this may be new competition.

The Denver home market is seeing a decrease in showings, fewer multiple offers, and buyers who are cognizant of the market change.  Yes, buyers want to own a home; but with more homes available on the market, they are looking at all active listings within their home choices.

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 currently feels slightly more balanced in certain areas.  July was a month that saw fewer Buyers in the market due to vacations and other family activities.  In most cases school districts have now started the new season.  Be prepared to act quickly, create your home buying plan, and stick to it.

A review of recent articles and blogs indicate that the mortgage interest rates may increase, so Buyers should find out how much they can borrow with these proposed changes.

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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