Dec 01, 2013

November 2013 Denver Housing Report (archived)

- originally posted November 1, 2013 -

Prices are stabilizing after a strong run-up earlier this year. Home sales have declined modestly since Summer, and that has put gentle pressure on a some sellers to negotiate. Not all sellers are in a negotiating mood though, so buyers shouldn't expect most sellers to take less than asking price. Remember, the best properties always have many buyers chasing them!

As of November 1st, we're still in a very strong sellers market which is confirmed by the continuing low levels of housing inventory. After inventory reached bottom this past Spring, the stock of Denver-Area houses has slowly been recovering. Market inventory increased over 50% since last March, when we bottomed out at a mere 6600 homes available for sale. We've now reached above the 10,000 mark, but almost half of that inventory is being sold each month. There's a long way to go to achieve 'market balance', which will occur at about 4 to 5 months of regular inventory.

List-to-sales-price ratios averaged about 98% last month (see graph below). So, on a $300,000 house, a typical seller might agree to pay some closing costs or points, or even take a very slight price reduction. No transaction is alike though, and many home buyers are still lucky to get their first choice of a home in this market.

In other news, interest rates have dropped again, and that's good news for end-of-year home shoppers. Although prices have momentarily stalled, price appreciation may kick-in again during the Spring market, in 2014. If you're soon to buy a home in this market, you should seriously considering getting in now, while the combination of lower interest rates and slowing prices increase your purchasing power.

Changes in short-term prices will depend on where interest rates go from here. If the anticipated and soon-to-be new Fed Chairman, Janet Yellin, has any say in the matter, she'll likely do everything possible to keep rates low for awhile.

Till next month,

 

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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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