The number of homes under contract jumped 23% from May of 2010. This is the first month in 2011 where we’re not comparing under contract data to the tax credit time of 2010. We’re finally comparing Denver real estate sales this year with the time after the tax credit ended last year (for under contract properties.)
The average sale price for both single family and condo are up over 3%, reflecting stability in the market. While the recent Case Shiller numbers for March indicated a potential “double dip” housing recession, the Denver real estate market is truly hanging in there.
Sellers are realistically pricing their homes, Buyers are taking advantage of the drop in interest rates to incredible lows, and more investors are entering the market and snapping up properties for their portfolios.
Inventory continues to fall, which is one reason prices are steady, even rising. Buyers aren’t finding as many homes to choose from, so the great ones are going fast. The number of days on market fell nearly 3% from April. Days on market were dramatically less a year ago, perhaps an overhang from the tax credit frenzy that was wrapping up at the end of April 2010.
The Denver real estate market may be contracting in terms of number of available listings, it’s not contracting based on the buyers making offers on homes. With a 23% increase in under contract properties, we should see the number of June closings rise considerably. Stay tuned!
Consider an investment property. With prices and rates at an all time low, it’s a great time to buy a rental. Search Gretchen Rosenberg’s web site at www.GretchenRosenberg.com.