What’s Trending?
Inventory levels are rising (finally) and # of sold homes are rising too. Here’s my May 2013 Denver Metro Market Watch so you know what’s going on. Trends for May 2013 in Denver Metro Real Estate:
- WHAT’S TRENDING: So far this year we hadn’t see the rush of spring sellers like we have in the past. Well…now they are starting to hit the market. We have over 1500 more sellers this month compared to last month
- WHAT DOES THIS MEAN: The market still favors sellers and especially as prices climb, but the increased inventory levels will be interesting to monitor and see if it gives the buyers a bit more control.
- TIPS FOR SELLERS: Make sure buyers are serious. Sometimes they are bidding on EVERY home just to keep their options open. Make sure they are serious before entering into a contract and then the buyer backs out.
- TIPS FOR BUYERS: Make your highest and best offer FIRST….don’t make an offer planning on a counter or negotiation. If it’s priced well and in good condition….other buyers want it too!
AVERAGE SOLD PRICE DOWN .18% FROM LAST MONTH BUT STILL UP 8% FROM LAST YEAR
- WHATS TRENDING: Average sold price is $308537. It was $275,000 in January 2013. That’s a BIG jump!
- WHAT DOES THIS MEAN: Prices are rising quickly which is great for sellers and a challenge for buyers. However, the biggest challenge is the appraisal. Getting homes to appraise for the price they are selling for can be a challenge.
AVG DAYS ON MARKET CONTINUES TO DROP! NOW= 48 days (DOWN 14% FROM LAST MONTH & 38% FROM LAST YEAR)
- Like last month when I wrote, this stat is still skewed. New listings that are priced well are selling in about 7 days. Then the overpriced listings and short sales etc are taking 60+ days to close. If you are priced well it will sell quickly. If you are WAY over priced, however, buyers still aren’t pulling the trigger on yours. They have learned from the previous crash and don’t want to be “upside-down”….plus appraisers are still being conservative on the values and limiting how much a lender will loan on a home regardless of how much a buyer will pay.
# SOLD HOMES UP 20% FROM LAST MONTH & 22% FROM LAST YEAR
- Comparing last year…….Active homes are still down DOWN 22% and Sold Homes are UP 22% which is creating our speedy market recovery. Fewer homes for sale but yet MORE are selling. No wonder buyers are feeling a pinch and new home builders are seeing record # of contracts/sales/deposits.
WILDCARD – ONE THING TO WATCH FOR: I mentioned last month that interest rates are the wildcard. Well…they still are. I have seen them climb to 4% or just over this past month which means buyers can afford less house as rates rise. Let’s hope the FED keeps them low or else this could have a BIG impact on our market by end of year and and heading into 2014.
by Michael T.
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