Denver Home prices: Denver real estate leads the nation in home price percentage increases, according to the Standard & Poor’s/Case-Shiller Home-Price Index. Denver’s S&P/Case-Shiller Home Price Index yearly percentage change improved for the ninth consecutive month, falling only 0.1 percent between November 2008 and November 2009. As reported by Standard & Poor’s, “Denver and Dallas are nearing positive territory with their annual figures at -0.1% and -0.6%, respectively”. Home prices have benefitted from the increased activity in November when buyers rushed to purchase a home before the expiration of the first time buyer credit. It’s incredible that prices were preserved during that buying frenzy.With the extension of the first time buyer credit perhaps we’ll see even more improvement.

Reduced inventory can often be an indicator of the health of the housing market. Michael Strauss, chief economist at the Commonfund, defines a normal inventory level and talks about the national inventory, “We’re showing signs that we’re clearing out the excess inventory, but inventories are still high.

A more normal level would be 5.5 to 6 months”. Unlike the nation, inventory of residential homes and condominiums in the Denver Metro area is at a normal level, finishing 2009 with a 5.7 month-supply. In 2009, its inventory fell 8.9 percent from November to December, and dropped 16.0 percent over the last year.

 

The Denver homes market showed signs of movement in a positive direction in October of 2009.  Considering the past 4 years of the Denver real estate

market, this is the first month to outperform the previous years SOLD DATA.  Denver real estate statistics showed a combined total of 3,708 units SOLD for single family homes and condos, that’s an increase of 10.98% over last October.  In October of 2008, 3,341 units closed and in October 2007 the number of closings were 3,398.  It isn’t until we go back to October 2006 that we see  a greater number of closed transactions.  Several factors affecting the number of homes for sale in Denver in 2008 included the downturn of the financial markets, increasing numbers of shorts sales and foreclosures, and a decrease in consumer confidence.

    

This Chart shows the inventory of homes for the years 2008 and 2009.  These are the active homes on the market for this time period.

1. Total combined inventory for both Single Family Homes and Condos was 15,076 in November of 2009
2. Total combined inventory for both Single Family Homes and Condos was 18,331 in November of 2008
3. Active Condo Listings in November 2009 were 4685 vs. 5366 for same time previous year

 The number of Denver homes on the market is continuing to show some decline .  Seasonal increases typically occur in March of each year and continue to increase through spring as more and more homeowners put their homes on the market.  There are some advantages to putting your home on the market NOW instead of waiting until spring:

• LESS COMPETITION – lower number of homes on the market now.
• SERIOUS BUYERS – most buyers looking for homes at the end of the year are serious buyers who need to buy NOW.
• TAX CREDIT EXTENSION - the tax credit extension not only extended the amount of time buyer had to purchase a home, but it has also been enhanced to include current homeowners.
• MARKET TRENDS – during the fourth quarter of the year we see a greater number of relocations occurring.  
• INTEREST RATES - at the current rate of 4.875% for conforming loans, this could entice buyers to take a leap now rather than risk an increased rate in 2010. 

UNDER CONTRACT DATA

November 2009 has outperformed the same time in the previous 5 years.   

• The number of properties UNDER CONTRACT is at 6925 that’s 1131 higher than the same time last year.
• Tax incentive has played a significant role.
• Number of homes UNDER CONTRACT in November of 2009 is the highest recorded for the same time in past 5 years.
• Short sales, pre-foreclosure transactions, and foreclosed properties are increasing the number of days a home is on the market. 

 SELLER CONSIDERATIONS:

• LEARN THE NUMBERS! 
  •  Supply and demand can increase or decrease price range and days on market.  
• STAGE TO SELL! 
  • In any market you home should SHINE. 
• FIND AN EXPERT! 
  • This is a tough market, having a Realtor that understands the complicated dynamics of buying and selling today is not only critical to sell your home quickly but will also affect your BOTTOM LINE!
• MAKE IT EASY! 
  • The easier it is to show your home, the more likely you will find a buyer quickly.  Restrictions and cancellations don’t bode well for most homeowners. 

BUYER RECOMMENDATIONS:

• BUY NOW!! 
  • Take advantage of the $8000  Tax Credit for First Time Buyers and the NEW $6500 Tax Credit for existing homeowners buying a primary residence.
• STAGE TO SELL!
  • Your offer will ALWAYS look more attractive to a Seller if you’re prequalifed with a lender.  
• FIND AN EXPERT! 
  • An expert will make sure your best interest are their number one priority.

Data extracted from Metrolist, Inc, on November 2009.  Denver, Colorado.