Denver CO Real Estate Market Trends: June 2010

Let’s take a look at the Denver real estate numbers through June and the surrounding metro areas for Residential and Denver Condo Units combined as of June 30, 2010.

(Source: Metrolist. Figures deemed reliable but not guaranteed)

So is our market in good shape? Let’s see.  For June, we can see that the Denver housing market is still most robust in the price range below $300,000.  The average list price is just above $400,000 yet average sold prices reflect the more active price ranges. Comparing the active listing inventory to the number of sold homes in June, we have an absorption rate of just over 5 1/2 months of inventory.  Pretty balanced real estate market in general.  Sellers will average about 80 days or so to sell and they’re negotiating around 7% off their original list price.

Of course, each neighborhood and property type is affected differently and these figures account for all of them.  Homes at the higher end price range in the metro Denver real estate market still struggle a bit in this market with fewer buyers qualified for those purchases and loans tougher to come by at those levels.

Where are we heading? After the deadline for the tax credit at the end of April, under contract listings have dropped off by roughly a third compared to April.  This wasn’t too unexpected, yet the market remains balanced as of the end of June with a big part of this being contributed by the lower price ranges. Sellers need to remain mindful of pricing competitively, condition and effective marketing.  There is a potential for the increase of distressed inventory into the market from the so called “shadow inventory”, which are homes with delinquent mortgages that many lenders have chosen to let ride so far.

So lets be cautiously optimistic for the Denver real estate market. Statistically the numbers aren’t that bad. If your home is struggling or your area is struggling, then pay attention to the numbers and adjust appropriately. Most Denver home sellers are discovering that it is still not an easy market in any way to sell.  If you may be considering a sale, please call me I can help.

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Steve Scheer, REALTOR®

Denver Realty Partners –

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

An Afternoon of Real Estate News in Denver

Update July 2: President Obama today signed the 3 month tax credit extension. Again, this is just for home buyers that were under contract by the April 30th. Many were unable to close by the June 30th deadline, this September 30 extension will give them additional time to close. Read more here: Obama Signs 3 Month Extension of Homebuyer Credit

Update July 1: The US Senate passed the tax credit extension yesterday. It is expected to be signed by President Obama today.
Read more here: Congress Backs home Tax Extension

Case-Shiller Index shows Denver real estate values up again

I heard earlier this afternoon that the latest Case-Shiller Index is out and as you can read here very nicely at Inside Real Estate News, this is the 6th month that home values in the Denver real estate market are up.  There were many factors that have fueled the Denver real estate market lately and all of these have to be taken into account.  This can be a time where we can be caution-ly optimistic.  As mentioned in the article, the report with May’s numbers is going to be very interesting.

First Time Home Buyer Tax Credit Extension back on the table

And as I was starting to type that up, a second piece of news that affects home buyers even in the Denver real estate market – the $8,000 home buyer’s tax credit once again has hope of an extension from the end of June to September.   As I wrote a bit ago as an update on my previous piece on the extension: The House has approved by a vote of 409 – 5 to extend the deadline of the $8,000 tax credit until September 30, to buyer’s already under contract (not for new buyer’s at all).  This is not final yet by any means. It is expected to be voted on tomorrow by the Senate.  Read more here:  BusinessWeek

So there you have it – good news for home buyers if you were still waiting for loans to go through if you already qualified for the $8,000 Tax Credit – there is hope, stay tuned, hopefully there will be more news for you tomorrow.

But if you haven’t bought that home yet in the Denver area, it is time to think about it since the Denver real estate market is looking better.  But as I mentioned, things vary – what may be up in one neighborhood may not be things are just as good in another.  Let’s talk about and see what is a good move for you.  Sometimes it still is no move, and if that is the case, I will tell you.

Click Here to Search All Denver Real Estate

Steve Scheer, REALTOR®

Denver Realty Partners –

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101.

Denver Real Estate Market – Most Improved According to BusinessWeek

According to an article released this week, Denver is the most improved in the nation in the housing market.  According to the article, priced jumped 5.8% in the first quarter of this year.  Boston and St Louis were 2nd and third.  You can read the whole BusinessWeek article here.

I would agree with the premise of the article & its view on the Denver market – people seem to be feeling a little better about their jobs and starting to feel a little better about the economy.  I see more people each day begin the process of a home search or start to inquire about putting a home on the market, when they have been holding off. There may be some lag in the market this summer, following the deadline for the tax credit, but things are certainly looking up and the market here in Denver is doing much better.

These figures are great news not only for Denver real estate, but for the nation in general. By beginning to focus on these positive trends perhaps the overall sentiment about the real estate markets and the economy can begin to shift gears and begin to move forward once again.  Positive thinking? You bet.  However, we can’t ignore the numbers either!

Click Here to Search All Denver Real Estate

Steve Scheer, REALTOR®

Denver Realty Partners –

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

720-849-6101

I was talking to a friend the other day and the subject of real estate came up. It seems like these days everyone likes to talk about the real estate market.  This friend wasn’t in the market right now to do anything, instead she was just curious about home values for her Highlands Ranch neighborhood.

If you read my blog regularly then you have likely heard me talking about absorption rates, especially regarding market statistics.  I’ve tried to explain how it relates to home sellers and buyers but it occurred to me that for many, the idea may not be too clear. Basically, absorption rates are derived from dividing the number of active listings by the number of sold listings for a specific period of time.  This is the basic and easiest way to determine absorption rates.  There can be other methods, such as using pending sales, etc…but generally this is it.

So, what can absorption rates tell me and why do I care? Once you’ve done the math, the number you come up with will be the amount of time the local real estate market is absorbing the current inventory.  In other words, this shows how fast are they selling.  Nowadays, this number is typically a number of months of inventory in a particular area.  As a home buyer or home seller this number can provide you a valuable target.  Sellers can determine for themselves how long the market is absorbing homes in their area and then determine how to price and market their own home to be on the front end of that time frame.  Buyers can use absorption rates to help determine the relative strength of a neighborhood and how to price an offer.

I hope this brief explanation helps you understand this key real estate statistic. If you are considering selling or buying a home in the Denver metro area, and you would like to discuss an effective strategy for your success then please contact me, I would love to help.

Steve Scheer, Denver Realty Partners
Real Estate in Denver & The Suburbs

Search all Denver & Denver Suburb Homes Here

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101 or email at sold@SteveScheer.com .

These Highlands Ranch real estate statistics represent the housing market activity in Highlands Ranch for zip code of 80130 (1/1/2010-2/1/2010), one of Highlands Ranch’s 3 zips. These statistics are for single family residential, detached homes and not condos or townhomes.

(Based on information from Metrolist, Inc. for the period 1/1/10 – 2/1/10.  Note:  This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy.  Data maintained by Metrolist, Inc. may not reflect all real estate activity in the market.)

As you can see from the table above, there has been a good amount of real estate activity in the month of January for this area of Highlands Ranch.  Looking at the under contract and sold homes, the market suggests an average price of around $332,000 with an average price per square foot of around $155.

The current active, or unsold listings, indicate a potential need to adjust downward to attract a sale based on the current market statistics.  The absorption rate of this month only is approximately 6.45 months of inventory.  Therefore, if you are a home seller in this market segment and you would like to sell your home in the next 45-60 days, then pricing will be a key factor and paying attention to the numbers is vital to your success.

If you are considering selling or buying a home in the Denver metro area, and you would like to discuss an effective strategy for your success then please contact me, I would love to help.

Steve Scheer, Denver Realty Partners

Search all Denver & Denver Suburb Homes Here

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101 or email at sold@SteveScheer.com .