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
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If you would like more information on the Denver area or more information on Highlands Ranch 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

Well the time seems to just keep flying by, way too fast! Here we are in June already and so I wanted to take a look at the sales numbers so far this year for the Highlands Ranch real estate market. However, since this real estate market can be difficult to understand and more difficult to predict, I wanted to only look at the SOLD homes which clearly indicate what the market has really done.

Highlands Ranch is broken down into three separate zip codes. This is the easiest way to determine statistics for this area, since many listings may indicate Littleton yet they are in Highlands Ranch. With this in mind, the three zip codes are 80129, 80126 and 80130.  The largest area of Highlands Ranch is in the 80126 zip code and so it also has the greatest number of homes sold.  I broke them down to two price ranges for this zip code only,  up to $450k and $451k and above. Here are the numbers.

Date Range 1/1/2010 – 6/1/2010 (Source: Metrolist.  Statistics are for single family residential property only. All figures are deemed reliable and not guaranteed)

Highlands Ranch Homes Sold – 80129

Total Sold – 148
Avg Days on Market – 82
Avg NET Sold Price – $332,849
Avg Price/Square Foot(NET) $159
% Sold/Orig. List Price – 93.51%

Highlands Ranch Homes Sold – 80126 – $1k – $450k

Total Sold – 196
Avg Days on Market – 72
Avg NET Sold Price – $293,335
Avg Price/Square Foot(NET) $149
% Sold/Orig. List Price – 94.17%

Highlands Ranch Homes Sold – 80126 – $451k and above

Total Sold –31
Avg Days on Market – 125
Avg NET Sold Price – $630,249
Avg Price/Square Foot(NET) $175
% Sold/Orig. List Price – 90.73%

Highlands Ranch Homes Sold – 80130

Total Sold – 159
Avg Days on Market – 82
Avg NET Sold Price – $314,098
Avg Price/Square Foot(NET) $157
% Sold/Orig. List Price – 94.10%

There are the numbers. So what do they mean?

It looks like throughout Highlands Ranch the average home sells in just about 3 months, with an average price just over $300k and most negotiate just under 7% off the original list price. This information can help you determine the average market so far this year.

If you are looking to sell your Highlands Ranch home and you want a professional to help you market your home to meet or beat the numbers, just let me know, I would love to help.

Click Here to Search 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

What is the Average Price of a Highlands Ranch Home?

This is a very quick and straightforward post that I intend to update monthly.  I have a lot of people ask this question and so here is the answer.

I am often asked what is the average price of a Highlands Ranch home.

Average Price for Active Listings in Highlands Ranch – $446,166.00

Average Price for Sold Listings in Highlands Ranch – $366,355.00

Average List to Sold ratio – 97%

Ok, that doesn’t look like it makes sense you may be asking.  Looks like the math doesn’t work.  Well let me explain.  The average value for active homes accounts for all homes in Highlands Ranch, CO – some of which are in a price range that brings the averages up.  Now if you look at the average sold home values you see they reflect where the activity in the market really is lately, in the $250-$400k range.

Another clue to see here is that the average seller is negotiating around 3% off the list price at the time of contract.  I say this intentionally because it can give some idea of how you may negotiate but it doesn’t indicate the percent of original list price to sold price.  This is often greater than the 3%, however it is difficult to determine how much a seller will reduce from the original price and when you may be negotiating with them at that point.

A real good idea would be to hire a professional Highlands Ranch real estate agent that knows the market and can track these changes in the specific neighborhood of the home you may be considering.

These figures come from Metrolist and are in no way guaranteed.  Also, the MLS area these figures are taken from includes Highlands Ranch and Lone Tree as one area and includes residential single family homes only.

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

Title insurance?  What is that and why do I have to pay for it? This is a fairly common question that I hear come up from home sellers when discussing putting their home on the Denver real estate market.  It is often a sales cost that they didn’t figure in because they weren’t aware of it.  In fact, this came up again just recently.  So, I thought that I would write a post and try to answer this question in a simple and straightforward manner.

First, you may wonder, what is “title”. Well, title is referring to your right to ownership of the land and/or property that the title is referring to. So why do I need title insurance or to provide it to a buyer? Title insurance will protect you against certain kinds of damage caused by a defect in the title. In Colorado, for example, a standard title insurance policy will protect against things such as errors in deeds, forgery, fraudulent conveyances, mistakes in public records,
and errors in estate proceedings that have happened prior to the closing of
the transaction that the title policy insures. There is owner’s extended coverage which protects against further title issues and is generally recommended and made part of most contracts. Title insurance policies are important because they protect against possible non-recorded claims against your property and ensure free and clear ownership.

Consumers should know there are two different title insurance policies issued in most real estate transactions. The first type is an owner’s policy, which we discussed above and will protect the new owner from any covered claims to the property. The second type is a lender’s policy, which will protect the lender against loss of an unpaid loan balance in the event of a claim.  Of course, if there is no lender then there is no additional title cost that can make things confusing.

Who Pays for Title Insurance? As mentioned before, there are two types of policies: a lender’s policy and an owner’s policy. As far as the lender’s policy goes, it is usually paid for by the actual buyer of the real estate. This is the party getting the loan from the lender and as such, pays for this policy. The owner’s policy on the other hand, is paid for by the seller of the real estate. They are insuring that the buyer enjoy the home free and clear. Most contracts indicate that the seller will provide title insurance at the seller’s cost. This leads to some confusion at times when it comes to reading over the HUD, or closing statement, when all the final figures are prepared for closing.  The home buyer may wonder why they are paying the cost of title insurance when the contract says the home seller is. Well, now you understand that what the buyer is paying for is the lender’s policy.  Of course in real estate, almost everything is negotiable, but this is typically the way the policies are paid.

Title insurance coverage and requirements may vary from state to state, so if you are out side of Colorado you should talk to your local broker.

Flickr photo courtesy of: Marco Bellucci

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