At a national level, discussions of a “double dip” recession and accordingly, another setback in home values, certainly have many consumers wondering what the future brings. Add the ongoing debate on how to handle the nation’s debt ceiling and the impacts any remedy will have on the U.S. economy and the worldwide economy, and I often ask myself, “When will it end?” Of course the media is full of bad news these days; that’s what makes ratings! Warm, fuzzy stories about the American family making ends meet, with husbands, wives and partners working well-paying jobs and families affording their “dream” home simply don’t warrant the media’s attention, right? At the end of the day, I believe there are far more of my clients in this latter category than the former and I would love the media to report your stories. And for those of you who are struggling right now, you too will survive these challenging times!
As I have said before, we are fortunate to call Denver home. Looking at the housing statistics for June, the local market continues humming along at a steady pace. Sales were up slightly (approximately 1%) in June 2011 compared to June 2010 and up over 9% from May 2011. Obviously there are some seasonal trends to consider here and usually we see an increase in sales as summer gets into full swing. The interesting number to consider, however, is the lack of new inventory of homes and condos coming on the market. With 20% fewer properties to choose from compared to the same time last year, many buyers are feeling the pinch in the local housing market and are having difficulty finding a suitable home! Combine this statistic with a 20% increase in the number of under contract properties (4,761) compared to last year, and I don’t see the supply side of the equation changing anytime soon. At an average of 104 days on market, real estate in Denver is still selling MUCH quicker than in most other cities. (According to Realtor.com, in May, homes on average sold faster in Denver than any place in the nation, according to an analysis of 146 metropolitan areas.) Yes, the average property lost 2.6% of its value compared to the same time last year, but some leveling in our market was bound to occur as it does in ANY market over time.
The reality is our firm has several clients shopping in the $200,000 to $400,000 price range who are having real difficulty finding homes in Colorado. As you can see by the graph below, this isn’t too surprising considering over 50% of the homes selling in the current market are in that price range! (Of course I have NEVER had a client for whom I couldn’t find a suitable home, it just seems to take a bit longer in these price points right now!) This seems to be the “magic” price range where homes are affordable. In many cases, the consumer is choosing between spending an equal or greater amount in rent for a comparable home that they can purchase, often at an equal or lower monthly payment!
As always, we are up-to-date on the latest Denver real estate market happenings. Please don’t hesitate to contact us whenever you or someone you know is considering buying or selling a Denver loft, home or condo!
