Jun 20, 2012

May 2012 Denver Housing Report

The average home price has now risen above last-years high. It did so two months ahead of the typical (and seasonal) peak for home sales in the Denver real estate market. During 2011, our high-point occured around mid-Summer. We've already surpassed that mark this year. If sales continue at this pace, our average home price may rise to levels that haven't been seen since 2007.

Total homes sold rose for the 3rd month in a row. The number of homes sold would probably be higher, if not for limited inventory and slim pickings. Looking at the graphs below, active listing inventory has not increased, but it has held steady around 10,000 units for the past 5 months. The number of new listings coming to market is fully being absorbed though. That does not suggest that every new listing is being sold, of course, but homes that are properly priced and in top condition, aren't sticking around.

The average condo price also rose by a good margin. Condo prices have been bobbling up and down for many months now, right around the $160,000 mark. Last month, we saw a large increase in the average condo price, upwards of $178,231. The 10% gain signals that upper-priced condos are finally beginning to sell.

Probably the biggest surprise in this market report was the ratio of "selling price" to "list price", which remains unchanged for two months running. The most plausible explanation is that many upper-priced homes are still recovering, and sellers are still not getting full price.. like with the lower-end properties. That ratio will eventually change as the market continues to firm-up.

As you'd expect with Denver's increased market activity, "average-days-on-the-market" has declined considerably, to around 90 days. This still may seem high, but there are many short-sale properties that are taking awhile to process.

Over the past 12 months we've seen a little more than 1% appreciation in the market. Don't expect prices to rise too quickly though, because there's a fair amount of control over appraisals and valuations. Metro Denver's upper-price ranges are still in recovery mode, but it wouldn't take much to get them to firm-up.

Average Home Price & Solds Graphs

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

Check Out Today's Interest Rates

Today's Interest Rates

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

 

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