October was an interesting month in Denver’s real estate market and in Denver. We continued our glorious Indian summer and home sales seemed to pick up in my office, The Kentwood Company at Cherry Creek.
When the monthly statistics were released today by our MLS, I was a little surprised by some of the numbers. I was particularly interested to see that prices have risen some since last year and last month. There has definitely been a shift in the homes we’ve been selling to higher priced homes. During the tax credit period, the lower price range was driving sales.
Now it appears that the very high end homes have come down drastically and there are some move-up buyers in the middle range. That is what’s most likely pushed the price rise and not an actual appreciation of homes in Denver. That will take awhile.
We have a lot more homes on the market this year from last. A year ago, we were still in shock from the meltdown. People were hunkered down and weren’t putting their houses on the market. The inventory numbers say to me that there are more sellers willing to take a chance and there are more homes for buyers to look at.
Our under contract numbers went up from last month. A good sign. September often signals the end of the selling season. Or at least the beginning of the slow period. This year, October outpaced September, showing that we have some life in the market going into late Fall.
The number of under contract homes dropped significantly from last year. That number doesn’t actually surprise me too much. Last October we were in the heat of the first tax credit, which everyone thought would end in November. The first-time home buyers were excited to take a chance on a house and definitely wanted to take advantage of the credit.
Closings were down in October. That’s because we had a really dead summer. Sales were slow. When the tax credit ended in April, things seemed to dry up pretty drastically. If offers weren’t being written in late-summer, it would be reflected in the October sold numbers.
We’ll keep on keeping for the next few months. But look out. I predict big things in the Spring of 2011! I said so in an interview today with John Rebchook for his Inside Real Estate News blog. While he has interesting comments in the article, I must say I disagree with his headline. Things are not at all gloomy. Things were gloomy at the end of 2008 and really gloomy in 2009. Now the clouds are parting and the sun is just barely peaking through! (Ignoring the fact that Denver got it’s first snow of the season today.)