Denver Colorado Real Estate Statistics | December 2011
January 15th, 2012 categories: Market Trends
The end of 2011 came with few surprises for those of us in real estate, and one big one.
The inventory of homes for sale in Metro Denver is nearly 40% below this time last year. It’s so low, that I can remember a time when it was almost triple what it is now.
What this will most likely do is accelerate the pace of home sales. With less on the market, it should take less time to sell your house.
Eventually, the quicker sales pace will result in increasing prices. This is always location and neighborhood specific. The snapshot is city-wide, but prices, days on market and appreciation will vary block by block.
With less than 11,000 properties on the market in the entire city, buyers are feeling a little like they don’t have much to choose from.
The number of sold properties has increased over November and from a year ago, while prices are up just a bit. Watch the first few months of the year to see inventory increase – it has to, and prices to increase as well.
Happy New Year Denver!
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate.
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Denver Colorado Real Estate Statistics | November 2011
December 13th, 2011 categories: Market Trends
Imagine you want to move from your city, small town, or suburb to a new location.
This new city isn’t as large as NYC or LA, but it’s big enough to offer you the company of over 2 million residents metro-wide, all the major professional sports, plenty of arts and culture and great restaurants for foodies. Added to that, a fun outdoorsy lifestyle.
Now imagine that you begin your home search in this city, only to learn that there are a little over 12,000 properties to choose from. That’s the entire inventory – from suburban ranches to downtown highrise condos. That’s it. 12,634 homes in every price point, neighborhood and housing style.
Here’s how this phenomenon is currently affecting people in Denver:
- Buyers feel like they’re circling around the same old inventory over and over. When something new comes on the market, if it’s in tip top showing condition and priced well, it’s gone in a matter of days.
- Sellers are feeling the tide turning and aren’t as willing to negotiate as they once were. This is understandable when the Seller has a new listing just on the market, Pottery Barn cute and priced aggressively. But Sellers who won’t look at offers when their house has been on the market for many months or who have had more than one offer and keep waiting for them to go up isn’t facing the reality of their particular piece of property. With inventory and prices this low, Sellers need to understand that Buyers will wait for new properties to come on the market rather that do what they perceive as anathema – overpay.
- Many buyers are deciding to push their price range up a little at their high end. They can’t find what they want and reason that with rates remaining incredibly low, they may as well push at the edges of their comfort level.
- This seems to signal a change in consumer confidence. If Buyers are willing to push a bit toward the top of their price range, they must have a sense that prices will not dramatically fall any further.
Denver’s residential real estate inventory is over 36% below where it was last year, and close to 11% below last month. some of this is seasonal, but that’s not all of it. The Sellers who don’t have to sell have decided to take themselves out of the market. For sure, there will be an increase in inventory after January 1st. But thinking back to the days when we had over 28,000 properties on the market in Metro Denver illustrates just how remarkable this is.
The sold prices have a floor under them now, and are even up about 3% since last month. The days on market are coming down, close to 10% below last year. So houses are selling faster than they have been the past three years.
This month has been a busy one. It will be interesting to see if more buyers come out of the woodwork when the new listings hit the market next month.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate.
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S & P Case Shiller Report Ranks Denver Real Estate Market in Top 5
November 30th, 2011 categories: Market Trends
The S & P Case Shiller Report was issued yesterday and Denver was ranked in the top 5 housing markets at number 5.
This report reflects September 2011 housing sales. Year over year prices in Denver were down, with a 1.5% decline. September 2011 prices were also down a little over August. The Case Shiller Report lags by 2 months, and this is a snapshot of where we were 60 days ago.
Denver has been consistently ranked in the top 5 housing markets, and with our low inventory that should remain the case in future months.
The decline in prices is most likely a combination of the typical seasonal slow down, a market rush on homes priced around $200,000 and a continued ongoing adjustment to market conditions.
The MLS figures for November sales will be issued in about a week. It will be interesting to see how the MLS – with more relevant Denver numbers – reports the November sales. That will be an indicator of where Case Shiller will be ranking the city in about 60 days.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate.
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Denver’s Economic Growth Strong by Some Measures
November 27th, 2011 categories: Market Trends
The Denver Post published a story this morning based upon research comparing Denver to 9 other U.S. cities.
According to their study, Denver continues to outpace most other regional cities for Economic Power, Earning Power, Brain Power and Innovation Attractiveness.
It’s been our hope, here in Denver, that the Innovation Attractiveness will help fuel employment, but apparently we’re lagging in jobs creation. We rank 6th out of the 10 for job creation and 5th for housing affordability.
I spent two days last week with a lovely family who are being moved to Denver from Houston with the oil and gas industry. They were a little glassy eyed with sticker shock in terms of housing affordability. However, one plus in Denver’s column is our relatively low property taxes.
A close friend also works in oil and gas, and she predicts that the Niobrara oil field could hasten job creation in the metro area. And Denver’s housing affordability rankings have actually improved during the recession. The housing decline and foreclosure crisis hit Denver earlier than most of the U.S., meaning we’ve come down to settle along the bottom.
One very interesting statistic in the Post’s article is the productivity of Denver’s workforce. Our GDP per-capita is $56,706 and ranks second behind only Seattle with a per-capita GDP of $60,859. This should attract businesses looking to relocate or expand. The average U.S. per-capita GDP is $11,149, meaning we have a highly productive workforce in metro Denver.
Jobs and employment are key, and they appear to be lagging based on the Post’s study. With such strong fundamentals in place, jobs should surely follow.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate. She can’t find you a job, but she can definitely find you a house!
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Mother-In-Law Suites Gaining Favor
November 18th, 2011 categories: Market Trends
While showing homes this year to several of my clients, one new trend seemed to stand out.
Several people mentioned a need to have an accessible second master suite for their parents. Bloomberg News confirmed this trend today in their online post “Homebuilders Target In-Laws, Dogs as Extended Families Grow.” We joke about our 20-somethings moving home and whether we could live with our mothers-in-law, but the reality is that many families are consolidating and cohabiting.
That’s a great trend for families. Maybe not so good for unique household formations, which drive real estate sales. Some people look at it as a temporary solution to a financial situation, but others view it as supportive and an opportunity for bonding or free childcare.
Regardless, this trend hasn’t gone unnoticed by home builders. They are sensitive to market demands, and building to suit the needs of buyers.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker who has sold many new construction homes over the years. Contact Gretchen for information on local builders.
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What the Press Has to Say About Real Estate
November 13th, 2011 categories: Market Trends
10/15/11. The Wall Street Journal. “It’s time to buy that house.”
10/21/11. Business Week. “Crazy deals await.”
10/03. Market Watch. “Now could be the best time in history to buy a home.”
US News & World Report. “Many buyers who waited for rock bottom are finding now is the time to buy.”
Denver’s inventory is low and buyers are searching for great properties. If you’re thinking of selling your home, get it on the market soon!
These headlines should begin to foster the consumer confidence in real estate that’s been lacking the past few years – even though we sold nearly 5 million properties in the US in the past year. It’s not the heyday, but if you’re looking to buy or sell a home in Denver, at least you won’t be fighting scary headlines.
Search for your new Denver home at www.GretchensDenver.com. Gretchen Faber is the Broker Manager at The Kentwood Company at Cherry Creek, one of Denver’s premier residential real estate companies.
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Why You Want Your Broker to Show You Properties
November 9th, 2011 categories: Market Trends, Relocation Tips
A few days ago I had a call from a buyer who wanted to see properties in Cherry Creek North. This seems to be a trend lately. Call the listing agent directly.
He found the homes on my web site, www.GretchensDenver.com, and gave me a list of what he wanted to see, which weren’t actually my listings. I asked if he was working with a broker. At first he said, “no.” Then he said, “well, my wife is, but the broker isn’t here this weekend.”
While I would love to grab new buyers, “double-end” a listing if it’s my listing and get another closing in before the end of the year, I also thought it best to warn him about why he should be represented, and what “procuring cause” is.
If you’re a buyer and you’re not real estate savvy or an attorney, then you should have your very own broker representing your best interests. If you have a broker who goes away for the weekend, then find out who is covering for him. If you call the listing agent directly, your broker will not earn a commission. Or you could be in jeopardy of paying your broker’s commission.
The same goes for builder properties and FSBO’s (for sale by owner.) Let your broker call them and set the appointment.
There’s more to real estate than checking out nice houses, and you need your broker involved to help you wend your way through complicated contracts, inspection issues and the appraisal. Not to mention the closing, settlement statements and other documents.
So when you find a property you like on the internet, call or email me. Or click the “contact” button at the top - if you don’t already have a broker representing you. If you do, have your broker call.
Thanks, Gretchen Faber
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Denver Real Estate Statistics | October 2011
November 8th, 2011 categories: Market Trends, Real Estate News
Sellers – this is not the winter you want to take your house off the market for the holidays.
The Denver metro area inventory is the lowest it’s been this entire millennium. Buyers are searching for homes and sellers are holding back. This level of inventory is about half what it was in the busy times.
If you’re getting your house ready to sell, get it ready now. And get it on the market. The weekly sales rate of 5.62 percent in October, was almost 44 percent higher than the weekly sales rate in October 2010.
Sales were up 12% from October 2010. Days on Market were down from September and year over year, reflecting the buyer demand for good properties.
And finally, prices are down too. Counter intuitive when there are such low interest rates and correspondingly low inventory. The reason prices show a decrease is the trend toward lower priced home sales. The “mix” of properties that are closing are bulking up around $200,000-$400,000. Mid-priced homes and high end homes are still taking longer to sell, and those sellers are still finding themselves reducing prices.
This is shaping up to be a “not normal” winter in Denver. Let’s hope the snow is in the mountains, the sun is in the city and real estate is hot.
Look at pretty pictures of homes for sale at www.gretchensdenver.com.
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Low Denver Inventory Leads to Multiple Offers
November 4th, 2011 categories: Market Trends, Relocation Tips
I’ve been working with a family relocating from the mid-west for several months. We look at a few properties whenever they make it to Denver for a visit.
There haven’t been many great matches for their specific needs (picture a giant playset.) This week, we’ve narrowed it down to three really good possibilities, with a fourth thrown in for good measure.
Here’s what we found out this afternoon as we’re deciding which one to make an offer on:
- 1 went under contract
- 1 got an offer yesterday and the seller is countering
- 1 has another agent with a client getting ready to make an offer
The inventory in Denver is the lowest since 2000 and nearly 28% below this time last year. That hasn’t translated into higher prices yet for a few reasons. The lower price point homes are selling in higher numbers, making it look like prices are down. And if prices were going to be down, this low inventory has helped keep a floor under any further decline.
This will be a telling time. I predict that we will begin to see slowly rising prices next year. I recently received multiple offers on a Washington Park bungalow and it closed less than 7 weeks after going on the market.
BUT! Sellers still need to very clearly hear what “the market” is telling them. There are properties that have languished on the market for months and months. Only once the price has been adjusted “to the market” will the seller receive offers.
If you’re thinking about putting your house on the market, do it soon. Don’t wait. Buyers in Denver need fresh meat!
Search for your new home on Gretchen Faber’s web site: www.GretchensDenver.com.
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Denver Real Estate Statistics | September 2011
October 31st, 2011 categories: Market Trends
Real estate in Denver has picked up steam during September and October. The summer was hot and dry, the fall has been brisk. Under contracts are up over last year.
Inventory is still extremely low, and buyers are finding it difficult to get into the house of their dreams without making some concessions. But sellers with any sort of perceived flaw in their home are nonetheless finding themselves waiting for an elusive offer. The perceived flaws that hold today’s buyers back are location issues, lack of updates and price.
Those are just a few of the reasons why such a profound lack of inventory still isn’t translating into higher prices. We have 7,347 fewer homes on the market from the same time last year, yet prices are still down 2.63%.
Another factor is that showings are bulking up at the $200,000 to $400,000 price point. A reflection of investors buying up rental properties. With vacancy rates hovering at only about 1%, it’s a crazy good time to own rentals.
If you’re a seller, don’t even think about taking your house off the market for the holidays. The shortage of inventory plays to your favor, particularly if your house is priced between $200,000 and $400,000.
Buyers can use this time of year to negotiate. Just make sure you do your research. Not every listed home is over priced. And if you’re not finding what you’re looking for, you’ll see an increase in your choices by mid-January.
Search homes in all neighborhoods and research sales statistics at www.GretchensDenver.com. Gretchen Faber’s real estate web site.
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