March was the month of “UP” in the Denver home market. While the inventory of homes for sale remained relatively stable, everything else was “UP” and the strength of the Denver home market continues to show its recovery. All indications are that this will be a strong year for the Denver home market. We are only weeks away from the start of the prime home selling/buying season.
Monthly Market Recap:
Active Inventory is 8,303 units at month end Sold units is 2,775
Average Days on Market is 105
Median Sold Price is $232,500
Average Sold Price is $284,035
Active Inventory is 2,022 units at month end Sold units is 700
Average Days on Market is 97
Median Sold Price is $125,500
Average Sold Price is $161,848
March Year-to-Date Market Recap (2012 versus 2011):
On January 1st of this year, pent up home buyer demand was released and the Denver home market saw the beginning of another phase of recovery. This is a dramatic turn-around from the prior three years when home ownership was not a consumer’s priority. Some of the other factors that impacted the home market in 2011 were availability of rentals and availability of homes for sale. Keep in mind that during 2011, home mortgage interest rates were the lowest they have ever been.
For purposes of this report, the Denver home market and the statistics reported herein covers previously owned homes. The source of the statistics is Metrolist, Inc., Colorado’s largest Multiple Listing Service.
At the close of 2011, the Denver market reported an overall 5% vacancy rate on rentals with a limited number of new units coming into the market. In February 2012, the rental vacancy rate was reported to be around 2 to 3 %.
Additionally, the number of homes available for sale started a downward trend in early 2011 which continued to the end of March 2012. In January 2011 the market started the year with 18,000 homes available for sale, ended the year with 10,100 homes for sale, and March 2012 ended with 10,325 homes for sale.
In certain cases, the market has seen homes placed on the market and contracts agreed upon in a matter of days. The market has even seen multiple offers and homes eventually selling for a price higher than the original list price.
We are now weeks away from the prime home selling/buying time. What does this mean? The market will see an increase in available homes for sale, under contract transactions will increase, sold/closed transactions will increase, and pricing may increase.
The prime home selling/buying time of the year starts in late spring and continues through the summer months when consumers plan on the sale of their existing home and/or the purchase of a new home such that the new home can be lived in prior to the start of the school year.
In summary, the market reflects the release of pent up demand, a growing sense of urgency among buyers and an improving economy.