Apr 25, 2013

March 2013 Denver Housing Report (archived)

What...?

Both 'total sales' and 'average prices' were down last month.  If you've been paying attention to anyone talking about Denver real estate lately, this may come as a big surprise!  The reason for the drop in sales and 'average prices' has everything to do with the continuing inventory shortage in the Denver real estate market.

Note:  Although 'average' prices have dropped, 'actual' prices have been driven-up due to a severe lack of inventory that we've never seen before.  In some areas the price jump has been dramatic, especially in the affordable price ranges under 300k.

Denver's market is frustrating for many home buyers right now.  Inventory levels have dropped to such lows (under 300k), that the graphs and charts below have produced some really odd numbers.  If inventory stays low like this, it'll become normal to see more irregular and unpredictable stats.

Another note about the drop in 'Average prices'.  Average prices for the market overall have declined, because sales of upper-priced homes are still trying to get a foot-hold in this market.  There still isn't enough 'move-up' demand to keep average prices steady, or from fluctuating.  As inventory recovers, that problem should fix itself.

Another odd statistic in this month's update is that the "average-days-on-the-market" has jumped, instead of dropping.  It actually rose about 7 days from last month.  This normally wouldn't make any sense with how quickly lower-priced homes are selling.  But, that's due to some agressive sellers who've over-priced their homes, and this all adds into the calculation.  Other delays are a result of multiple offers on foreclosure homes that are slowing down the response time due to the increased demand.

That's about it with this month's 'slightly odd' market report.  The stats will continue to change with a more unexpected twists as we head into April 2013, so stay tuned.

Till next month,

Average Home Price & Solds Graphs

Average Home Price, Inventory, & Days-On-The-Market Graphs

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Today's Interest Rates

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Originally posted at: Average Home Price And Trends Report. Data provided by Metrolist. Graphs copyright© Michael Dagner Group. All information deemed accurate, but cannot be guaranteed. Image attribution - percent - www.sxc.hu