In September 2009 there were 19,834 homes on the market in Denver which was down nearly 2% from the month before and over 17% fewer than September 2008.
Today’s inventory is quite a bit higher, at 22,880 homes currently on the market in Denver.
We’re almost back up to the 2008 number of active listings, having posted a 15.36% gain over same time last year. So there are still plenty of great homes on the market for buyers to choose from. Buyers – you do not need to wait to find your next home, and in fact you shouldn’t wait.
September and October have been two of the busiest months since the tax credit ended. While deals are trickier to hold together – with inspection, appraisal and underwriting issues causing heartburn to Buyers, Sellers and Brokers – there are deals to be had.
The line “You could be in your next home by the Holidays!” couldn’t ring truer. Rates are so low, there’s barely a cost to borrow money. You may as well borrow it and hold the property until values rise again, because you certainly aren’t earning much on your CD’s.
Denver’s average sale price is down from a month ago, but still up over last year. Prices will stay low while inventory stays high. By the first of the year, prices should be creeping back up. Maybe not enough to give Sellers back any ground they lost since the Great Recession began, but enough to give Buyers pause.
Here’s the news that should wake Sellers up. Days on Market is getting longer. As I said in August, Days on Market is looking back, but looking forward we’re now at 7.73 months of available inventory. The current number of homes on the market 22,880 divided by closed sales last month, 2,958, gives us 7.73 months to sell off the current inventory at today’s rate of sales – and with no new inventory being added.
We’ll need to accelerate the rate of sales or curb the addition of new homes to market to get back down below 6 months of inventory. 6 months inventory is considered a “balanced” real estate market. If you’re thinking of putting your home on the market soon, have a discussion with your broker about how to get it in “first place” with buyers.
In coming months, watch what happens to our inventory, our average sales price and how long it’s taking to sell a house. These are all great snapshots in time to tell us what’s happening in the Denver real estate market.
To take a look at nearly all of the homes on the market in Denver, you can search Gretchen Rosenberg’s web site. It’s easy to sort by drawing a circle on the map or by typing in your search parameters – you won’t need to look at all 22,880 homes!