It’s that time again! Time to review the performance of Denver’s real estate market in February.
Stocks are plunging, national employment numbers are falling and yet our real estate market seems to be weathering the storm. We may be on shaky ground, and we are still seeing some prices falling, but deals are coming together and most buyers are able to find financing at great rates. In fact, 4,183 homes were put under contract in the month of February – a 9.19% increase over January.
We’ve added inventory since last month, and currently have 20,059 properties on the market. The increase in inventory is reflective of sellers who waited out the holidays and had their house ready to sell after the first of the year. I would expect to see this number continue to rise over the next few months, but hope that the increase is slight enough to keep the days on market below 5 months. If the days on market rises significantly, prices are at risk to drop further.
The reduction in sales prices from a year ago is influenced by the mix of houses selling. The middle tier of homes are selling much faster, thus the prices appear to have dropped 14.63% since last year. You will also note that we had a price increase since January by 2.19%. That’s a fabulous sign for our market. Many sellers are reducing prices to get their homes sold which is clearing out the inventory, but has depressed the average price.
I’ll say it again – you want to buy low and sell high. Too many people are selling low right now in too many markets. Denver’s real estate market is showing signs of recovery. Now is the time to buy low. Don’t look back and see that you missed your opportunity.
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