The news today was about the recession. That’s been the news for two years on a daily basis and today was no different. The Fed is buying more Treasuries and investors are moving out of riskier investments.
And what are Denver real estate buyers doing? It would seem that many were sitting on the sidelines during the month of July. Sales slowed considerably from last year. We still had a good number of closings, the pending sales from the tax credit frenzy of buying earlier in the year.
Our total inventory for single family and condos is now up by over 12% from July 2009 to 23,450. Inventory increased by over 3% since June.
The number of homes we put under contract in July was down by nearly 28% from last year and down by nearly 2% from June.
The bright spot? Prices are still up year-over-year. We’re 6.72% higher in our average sale price since last year, but down a little since June.
I heard rates quoted today as low as 3%. Buyers who are serious about moving should jump at the chance now. There are plenty of great properties to choose from and you can buy so much more house that you could a few years ago.
We’re likely to have an increase in inventory for a few more months, and then it will slow down over the winter as sellers opt to wait until spring to sell. Less homes on the market over the winter may help shrink time on the market, but it we may see a neutral effect as there are typically fewer buyers out during the winter months.
If banks continue to add their inventory of foreclosed properties (REO’s) to the market, we’ll have an even larger jump in inventory. That will effect every seller who hasn’t sold yet. Sellers – get your house next in line for an offer. If you aren’t competitively priced and in perfect showing condition, you’ll bolster the buyers’ decision to buy the other house, not yours.
Buyers compare. They’re comparing your house to the competing properties in your area. They’ll note if your lot is smaller, but your price is higher. They’ll note if your basement isn’t finished, but your price is higher. Give them a reason to choose your house so that you can be included in the next set of market stats as a closed property.