How’s the market?

 

The numbers

 The average sold price for the Denver Metro area is up 8.1% from the prior year ($328,293.00) but down 2.4% from last month. The reason the average sold price is down from last month is because the number of sales are lower due to lack of inventory. If you are looking for a home or condo in the Highlands/LoHi area, Wash Park, or Downtown Denver area you are quite aware $328,000 does not get you very much, most likely a small attached home or condo. Look for a future blog regarding alternative neighborhoods for Wash Park and Highlands/Lohi, or email me and I can give you the list.

Below is a graph showing housing Supply in Months in the Greater Denver area . A five to six months supply of homes is ideal-it is a balanced market. Over 6 months supply of homes reflect a buyers market.  It is  a seller's market when there is a 3-4 months supply. When data shows less than 1 month to 2 months supply, it is considered an extreme seller's market. If you are looking for a home under $400,000 you can see below why you are getting into bidding wars with every offer. Want to win that dream home? Learn how to win bidding wars.

 

months supply of homes on the market


List to sold ratio

If you are purchasing a $200,000 condo downtown or a $900,000 home in Wash Park, the majority of homes are selling at roughly 96-98% of list price. Buyers can expect to pay list price or more for their new Denver urban home.

Feb Metro Denver List vs Sold Price

Average days on market

A review of the statistics reveal the following average number of days a home stays on the market

  • All price ranges as of the beginning of this month =42 days
  • under 200K = 36 days
  • under 400K = 44 days
  • 600K = 88 days

If a house is priced correctly or even slightly over a recent comparable sold home, it will sell in days not weeks. Talking with other brokers in my office we  found out that if a listing does not have an offer after the 14th showing or after 2 weeks on the market it must be over priced. Two years ago we would wait 20-30 days before making a price adjustment, but in it this extreme seller's market we are acting quicker.

 

Condo market


I personally do not like the data regarding the condo market because I do not think is truly reflects what is going on in the market. The data for condos is not very accurate because all attached home are included in the condo data. So a $600,000 attached home in the Highlands would be considered condo, but in reality it is a single family attached home. The condo market however is doing great and homes are selling faster and for more money than last year. For example a 1 bed 1 bath condo with Parking in the Capitol Hill/Uptown area would typically sell for $140,000-$180,000 depending on quality of finish and location. Now a 1 bedroom 1 bathroom with parking is selling for $170,000-$250,000.

 

 Please keep me in mind for your Central Denver buying and selling needs  Barry Kunselman | Porchlight Real Estate Group 838 Broadway Denver  Colorado 80203 Office: (303) 733-5335 Direct: (303) 887-0588 http://www.buydenverurbanhomes.com/