Denver Market Update – July 2011

Monthly Market Recap

Single Family:

Active Inventory is 14,014 units at month end Sold units is 3,082
Median Sold Price is $237,000
Average Sold Price is $298,654

Condos:

Active Inventory is 3,569 units at month end Sold units is 753
Median Sold Price is $123,150
Average Sold Price is $153,058

July Year-to-Date Market Recap (2011 versus 2010):

Single Family:

Active Inventory 14,014 versus 17,983 (↓22%) Sold Units 18,169 versus 19,138 (↓5%) Median Price $228,500 vs $230,000 (↓1%) Average Price $281,597 vs $279,800 (↑1%) Sales Volume $5.1B versus $5.4B (↓6%)

Days on Market 109 versus 83 (↑31%) Absorption Rate 6.13 versus 6.61 (↓7%)

Condos:

Active Inventory 3,569 versus 5,467 (↓35%) Sold Units 4,501 versus 5,111 (↓12%) Median Price $122,165 vs $135,000 (↓10%) Average Price $156,921 vs $161,055 (↓3%) Sales Volume $0.7B versus $0.8B (↓14%) Days on Market 121 versus 88 (↑38%) Absorption Rate 6.26 versus 7.28 (↓14%)

DENVER MARKET UPDATE JULY, 2011

July is the second month in 2011 where 3,835 homes closed at an average price of $270,066 which resulted in $1.0 Billion in sales volume for the month.

Note: Absorption Rate is also known as Month’s Supply of Inventory and represents the number of months that would be needed to deplete the current active listings inventory at the current sales rate.

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:

The inventory of active listings remains low in the Denver market and normally this would represent a “seller’s market”. Mortgage rates have reached record lows and competitive rents are going up. If you are a seller, how do you overcome the basic buyer reluctance which is the fear of paying too much? How do you represent the value of your home? What are the creative options that you need to be aware of in today’s market? Talk to a Classic Colorado homes team member today as she is prepared to advise you of market valuation, buyer wants and needs, guide you through the home selling process, and most importantly become a valued resource for you.

Advice to Buyers:

Mortgage rates reach record lows and rents are going up. What does this mean to you? For one, the lower the mortgage rate equates to a larger price range of a home that you can afford. Higher rents open up home ownership possibilities. Is home ownership right for you? Talk to your CCH team member today about the benefits of home ownership.

Let’s review the 7 steps to take before you buy a home? The steps are decide how much you can afford, develop you home wish list, select where you want to live, start saving, ask about all the costs before you sign, get your credit in order, and get prequalified. Additionally, know how much financing you qualify for, research your priorities, establish a wants list, and establish a needs list. Pay attention to only the local market as real estate is local. The local real estate market can be a single home, a block of homes, or a subdivision.

Lifestyle continues to rate number one in the minds of buyers. Establish your personal expectations of home ownership benefits and costs.

Talk to your CLASSIC COLORADO HOMES professional today about your lifestyle preferences and the benefits of home ownership.

Things to do in Denver on the 4th!

Here’s a list of activities for the 4th of July in Denver, CO!  Have fun & be safe!! http://www.denver.org/what-to-do/museum-art/denver-4th-july

It’s YOUR life!

Real estate is local. Not everything you hear in the news relates to the Denver Market. Even in Denver, the market is different from neighborhood to neighborhood. Also, remember..when YOUR life requires a sale or purchase, it’s because it’s right for YOU for your life right NOW. Make your decisions on what is best for you and your family, not what the media or even your friends may say. OK, I’m done lecturing now..

DENVER METRO AREA – MARKET UPDATE – MAY 2011

The May 2011 month end inventory of unsold homes is at 19,573 units, even with last month and down 11% from May, 2010.

4,777 units were placed under contract in May, up 1% from April and up 23% from May, 2010.

3,732 units sold/closed in May, up 9% from April and down 15% from May, 2010.

Residential average price, $257,177 for 05/2011, increased 3% month over month and 4% year over year.

Single Family average price, $279,443 for 05/2011, increased 3% month over month and 2% year over year. 40% of the Single Family properties sold/closed in May were under $200,000 and 29% were in the $200,000 to $300,000 price range.

Condo average price, $160,051 for May, increased 1% month over month and 2% year over year. 34% of the Condo properties sold/closed in May were under $90,000 and 61% were under $150,000.

Condo median prices increased 2% to $123,525 in May when compared to April and decreased 9% from $135,000 in May 2010.

Single Family median prices increased 4% to $230,000 in May when compared to April and remained stable when compared to May 2010.

The leading counties for home sales in the Denver market continue to be: Denver, Arapahoe, and Jefferson.

Advice to Sellers:

More and more prospective buyers rate Lifestyle as their top priority. With that being said, the prospective buyer is looking for a home that has everything they want and are not interested in doing renovation/home improvement after the purchase.

Advice to Buyers:

Rental rates continue to increase and availability of rental properties continue to decrease. Denver continues to be a great market for first time home buyers.

Lifestyle rates number one in the minds of buyers. Establish your personal expectations of home ownership benefits and costs.

You may ask “Does buying really make better sense than renting?” While the answer is personal, you should take into consideration the results of a recent Fannie Mae National Housing Survey which shows that, forgetting the finances for a minute, four of the biggest reasons people buy a home have nothing to do with money: They want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space and to have control over their space.

Call us and let’s talk about your lifestyle preferences and the benefits of home ownership. Martine 303.898.1866 or Mariel 303.564.1122.

Denver Metro Area Market Update – April 2011

The April 2011 month end inventory of unsold homes is at 19,553 units, up 1% from last month and down 9% from April, 2010. The inventory of unsold homes will continue to increase in the coming months. Now is a great time for prospective sellers to contact us to discuss listing your home as Denver is in the prime selling/buying season.

4,749 units were placed under contract in April, up 33% from March and down 28% from April, 2010. Please note that in April 2010, the First Time Home Buyer Tax Credit effectively expired. As such, the April, 2010 market saw buyers create a frenzy situation by placing multiple offers on multiple homes in order to insure use of the federal program. 

3,429 units sold/closed in April, up 7% from March and down 18% from April, 2010. Please see the above note to appreciate the impact of the First Time Homebuyer Tax Credit program last year. In review, the first time home buyer/move buyer needed to have the home under contract by close of April and closed by June 30th. The June date was later changed to September 30th to take into consideration the extended time period required to close a distress property.

Residential average prices, $248,991 for 04/2011, decreased slightly month over month and year over year. 

Single Family average price at $271,969 decreased slightly month over month and year over year. 41% of the Single Family properties sold/closed in April were under $200,000 and 27% were in the $200,000 to $300,000 price range.

Condo average price at $158,438 decreased slightly month over month and year over year. 37% of the Condo properties sold/closed in March were under $100,000 and 74% were under $200,000.

Condo median prices increased 1% to $121,200 in 04/2011 when compared to 03/2011 and decreased 13% from $139,700 in 04/2010.

Single Family median prices decreased 1% to $222,000 in 04/2011 when compared to 03/2011 and decreased 3% from $230,000 in 04/2010.

The leading counties for home sales in the Denver market are: Denver, Arapahoe, and Jefferson.

Advice to Sellers:

Establish your expectations as to home pricing, deferred maintenance needs, and the average amount of time required before your home can be sold. Give us a call – we’re prepared to guide you through the home selling process.

Denver is in the prime home selling season. It is time to take advantage of this prime home selling season to sell your home.

Advice to Buyers:

Rental rates continue to increase and availability of rental properties continue to decrease. Denver continues to be a great market for first time home buyers.

As we move through the prime home selling/buying time of the year, more and more buyers will be entering the market. Establish your personal expectations of home ownership benefits and costs.

One may ask “Does buying really make better sense than renting?” While the answer is personal, one should take into consideration the results of a recent Fannie Mae National Housing Survey which shows that forgetting the finances for a minute, four of the biggest reasons people buy a home have nothing to do with money: they want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space.

Call us today about the benefits of home ownership. Martine 303-898-1866 or Mariel 303-564-1122

How’s the Denver Market? January 2011

The state of the market in general is described as “Choppy and Confused”!

Anyone who bought or sold a home in 2010 can tell you that it was a challenging year for Real Estate! Looking ahead, however, there are a couple of wild cards out there that could make the real estate market in 2011 look very different. First, if the job market improves, we will see an immediate improvement in the residential market. So that’s good news for Sellers! Second, we would point out that the health of the Real Estate market is at least somewhat in the hands of the Media. The more that’s written about how terrible the housing market is, the more apt people are to sit back and do nothing.

A true recovery in home sales will not begin until the Government involvement in the housing market subsides and the private sector employment growth increases!!! Has the housing market hit bottom? Will we have to wait until sometime in 2011 or 2012 to see a bona fide recovery? While unemployment is the biggest drag on the Real Estate market, among major metro areas Denver is one of four that have seen supply and demand move back into some balance and also seen general economic conditions improve. The others include Boston, Central New Jersey and Dallas/Fort Worth.

A flurry of year-end buying caused home resales in Metro Denver to increase in December 2010

· The number of houses sold increased in December 2010 compared to December 2009, but the average sold price dipped.

· 2,422 Single family homes closed in December 2010 vs 2,328 in December 2009 a 4.0% increase.

· The average Sold Price was $274,625 in December 2010 vs $281,756 in December 2009 a 2.5% decrease.

· The December 2010 average days on the market was 111 vs 88 days in December 2009 a 26.1% increase.

· 602 Condos closed in December 2010 vs 631 in December 2009 down 4.6%

· The average Condo Sold Price was $166,841 in December 2010 vs $160,399 in the same month 2009 a 4.0% increase.

· The December 2010 Condo average days on the market was 132 vs 93 in December 2009 up 41.9%.
2010 Activity and a balance of Supply vs Demand shows some good signs for 2011 Market!

· Denver Metro Single family home sales totaled 30,777 in 2010, down 7 percent from the prior year.

· Condo sales also declined, with 8,041 properties sold in 2010, a drop of 10.2 percent from 2009.

· Current Active listings on the market began 2011 at 13,941 homes and 4,316 Condos up 13.7% and 2.9% respectively.

· The month’s supply of inventory decreased to 4-8 months across most price ranges in Metro Denver, even up to $750,000.

· The Luxury market improved late in the year, and when the upper end is moving, all price ranges generally benefit!
Advice for Buyers - Of course anyone in this market with so many mixed signals is nervous about buying, but my advice would be not to wait! If there is one thing I’ve learned about this real estate market, is that it usually takes a long time to unwind but once it decides to turn around it is like someone turning on a light switch. Those prices will move up very quickly, and you will be just like every other buyer bidding on the same house. Now is a great time to take advantage of low interest rates and better buying power. Just 5 years ago rates were closer to 8%, and now they are near 4.75%. That is a phenomenal savings and smart buyers will realize that now!

Advice for Sellers – They need to do a couple of things: First, they should be thinking about pricing their home for exactly what it’s worth. The strategy of pricing a home high and letting buyers make a lower offer can backfire! In today’s market, it could take several bids from buyers to get one acceptable price. So you want to price it right when you first enter the market, so buyers will be willing to make a bid and create competition between buyers. The second piece of advice for Sellers is to realize you are in competition with your neighbors. They are competing with you to sell their house, so you had better make sure that yours is prettier than theirs. Make the inexpensive improvements that buy you some fashion sense, and even consider staging the home if necessary. Do the little things and, “Win the Beauty Contest”!

Real Estate markets can recover much faster than they can fall. I have seen it many times over, and “Miracles do happen”!

 

For a meaningful holiday season…

I received this from a top-notch agent in Phoenix, Beth Steil, and thought it was a good piece to pass along…

For so many people, 2010 has been a roller coaster experience. And some are ready to get off the ride! The economy has impacted everyone, some much more than others. And the impact hasn’t just been financial. Attitudes, emotions, plans, and mindsets have all been affected. For many, the holiday season is a time that is anticipated with both joy and anxiety. Sure, we love the celebrations, the family traditions, and we cherish the memories of holidays gone by; but along with them, we add the stresses of preparation, expectations and the fear of letdowns. And, this year, the stress and anxiety level is likely to be amplified. With this in mind, here are ten tips that can be helpful for an enjoyable, meaningful holiday season in 2010.

1) Set manageable expectations. Understand that you can’t do everything, and with our current economic realities, you might not be able to do everything you’ve done in the past. If this is true for you, there might be a sense of disappointment. Still, it doesn’t have to ruin your family’s holiday season. So, be realistic about what you can do. Keep in mind that it’s the holiday “season” (not “day”) and spread out your activities to lessen stress and increase enjoyment.
2) The holiday season does not eliminate sadness or loneliness. Problems and difficulties arise even during the holiday season. And, for some, the holiday season evokes painful memories from recent events or the loss of loved ones in the past. Give room for yourself and your family to experience these feelings.
3) Acknowledge the past, but look toward the future. Life brings changes. Each season of life is different. Determine to enjoy this holiday season for what it is. Acknowledging the past, whether it was good or bad, is appropriate. But, if you find that this year has been a rough one and you don’t anticipate having the best holiday season ever, try not to set yourself up by comparing today with the “good old days.” Take advantage of the joys the present holiday season has to offer.
4) Develop and encourage a life of gratitude. Gratitude is an attribute that transcends circumstances. No matter what your circumstances, there is reason to be thankful in them. Your circumstances may never change, but your attitude toward them can change…and this can make all the difference.
5) Do something for someone else. Even if this has been a difficult year for you and your family, helping others will actually help you too, as your focus will move from your own circumstances onto serving others. While there are always people who can use a helping hand, this year, I suspect there are many more. So, enrich this holiday season for your family by getting involved in serving others.
6) Enjoy activities that are inexpensive or free. There are many good holiday-related activities that will add to your family’s enjoyment that are either free or low cost, such as driving around to look at holiday decorations, baking Christmas cookies, going window-shopping, etc.
7) Enjoy a family holiday tradition. Traditions provide opportunities to keep your family’s legacy going. They create meaningful memories. So, from the silly to the sentimental, if your family has some holiday traditions, if possible, be sure to include them in your holiday activity plans.
8) Try something new. Traditions are great, but sometimes families find themselves celebrating the holidays in exactly the same fashion, year after year. And, this can result in your family experiencing a holiday funk. So, think about finding a new way to celebrate the holiday season this year. You may just create a new tradition that will keep going for generations!
9) Spend money responsibly (especially this year)! The holiday season brings with it a big temptation to spend lots of money especially when it comes to purchasing Christmas presents for your family. Don’t be afraid to say no to this temptation, especially if you’ve been hard hit by the recession. Don’t spend beyond your means and rack up significant credit card debt!
10) Carve out some time for yourself! Don’t take on all of the responsibilities of your family’s holiday celebrations by yourself. Share the load. Create some space during the holidays for you to recharge your own batteries. (Batteries not included…)

Now, Go Play and Frolic!

How’s the Market? December 2010

It’s Confirmed, The Housing Double Dip is Here!

The most recent Case-Shiller report shows in their 10 City and 20 City Composite index that we will see a double dip in housing prices nationally in 2011.  Most of the gains we saw in pricing may be lost in the coming year according to their current statistics.  The good news for the Denver Metro Market is that 12 of the 15 worst markets are in Florida and Arizona.   This however does give us some guidance for our 2011 market.

The Denver Metro Market should outperform the U.S. Market in 2011

• The current inventory continues to fall in a seasonal adjustment to 21,168 total residential units
• Foreclosure filings for 2010 are lower in all Counties, except Eagle County (mountains)
• Colorado’s unemployment numbers are lower than most of the United States
• A solid tax policy should encourage employers to start creating jobs again in Colorado
• Jobs creation is the formula for consumer confidence and home purchases

Solid Under Contracts In the Upper Price Ranges for November

• Post election confidence creates a new and exciting activity in most price ranges
• A solid increase in the move up market as middle price ranges receive contracts
• Offers have increased in the $750,000+ market in November
• Buyers taking advantage of low prices and very low interest rates

How to prepare for and find Success in the 2011 Market

• Realize that the number of units sold should increase in the New Year, but not prices!
• Sellers should continue to put their property in show home condition!
• Sellers must price their home correctly when they first come on the market!
• Buyers should take advantage of low interest rates, but realize rates are rising!
• Buyers may realize that certain price ranges are low on inventory, so don’t wait if you like the home!
• Take action on some of the best buying opportunities in generations!

Most importantly, enjoy the Holiday Season with Family and Friends!

All real estate data taken from Metrolist Inc. on December 4, 2010  Denver, Colorado

Giving Thanks

As Realtors, we move from transaction to transaction, giving our best to our clients. We’re pleased when they’re happy, determined to make things perfect when it’s not, and satisfied that we’ve contributed something positive to their family life. We say thank you when they hire us and thank you when we complete the closing and we send a card at the holidays thanking them for their past business. What about all the time in between? I know, we keep in touch through phone calls, emails and meeting for coffee. But do we really take a moment to think about how lucky we are that they are in our lives, both on a personal and business level? I think I just take it for granted sometimes that they have chosen me to be part of their lives. They tell me lots of things about their private lives, probably things they tell no one else. They trust me and its not just about real estate. I am so fortunate to know them and to be part of their lives. Just in case I haven’t said it lately, Thank You!

What are we worth?

Just saw a posting on another site by a consumer asking why agents receive +/- 3% of the sales price when acting as a buyer agent. He commented that other professionals such as attorneys charge by the hour, why not real estate agents. Here was my response:

Actually, attorneys give their clients the choice of an hourly fee plus retainer or a contingent fee which can be upward of 50% of the amount collected, depending on the type of case. In light of this, the 3% buyers agent commission seems like a steal.
3% of the sales price seems like a bargain when looking at the total picture.

Part of what you are paying for is not the time expended but the knowledge, training, experience and education obtained by the licensee. This reminds me of the time when my husband’s secretary (he’s a lawyer) wanted to be paid similarly to him because “she did all the work” and he was paid significantly more money than her monthly salary. Of course, she didn’t attend or pay for 4 years of undergraduate and 3 years of law school at Michigan, nor did she take the risk of disbarment, lawsuits, monthly overhead, insurance, payroll, health insurance or employee taxes.

What do you think? Are real estate agents worthy of their commision percentage?