Denver's is still experiencing a "Buyer's Market", but we are continuing to see a decrease in available homes on the market. More importantly, the Denver housing market is starting to see a reduction in the number of days it takes to sell a home. Here is an interesting chart that plots some of the communities around Denver to reveal both the Average Sales Price as well as the Months of Inventory for that community.Oct. 08 Months of Inventory vs. Average Price A six month inventory of homes is considered to be a balanced market.
As you can see from homes in Cherry Hills, Greenwood Village, Larkspur, Conifer, Evergreen (and areas not show such as Franktown, and Evergreen) have an excessive amount of inventory and are taking between nine to 17 months to sell (depending on price and area). You would also be correct if you guessed that home sellers in these areas are not very happy with their inability of finding a buyer for their home.
On the other hand, you can imagine how happy the banks and individual owners are who are selling homes priced under $225,000. Many owners are seeing multiple offers with homes priced under $150,000. Savvy owner occupied buyers and investors are snapping up homes in this price range resulting in a very tight 1.9 to 4.7 month supply. See Oct. 2008 Active - Sold & Days On Market. Many of these areas are also starting to see APPRECIATION.
The average home in Metro Denver increased two percent in 2006. During 2007, the average price dropped by thee percent. Then in 2008, the average home price dropped by eleven percent. But, remember, these reported averages were greatly influenced by the fact that so many more lower priced homes were selling than higher priced homes; as compared to prior years. We will likely see a strong appreciation (in AVERAGE Metro Denver prices) during the next 12 to 18 months as the lower priced home buyers finish snapping up the great deals and the higher priced homes begin to sell again. - Stay tuned. The ride will be interesting.
On the other hand, you can imagine how happy the banks and individual owners are who are selling homes priced under $225,000. Many owners are seeing multiple offers with homes priced under $150,000. Savvy owner occupied buyers and investors are snapping up homes in this price range resulting in a very tight 1.9 to 4.7 month supply. See Oct. 2008 Active - Sold & Days On Market. Many of these areas are also starting to see APPRECIATION.
The average home in Metro Denver increased two percent in 2006. During 2007, the average price dropped by thee percent. Then in 2008, the average home price dropped by eleven percent. But, remember, these reported averages were greatly influenced by the fact that so many more lower priced homes were selling than higher priced homes; as compared to prior years. We will likely see a strong appreciation (in AVERAGE Metro Denver prices) during the next 12 to 18 months as the lower priced home buyers finish snapping up the great deals and the higher priced homes begin to sell again. - Stay tuned. The ride will be interesting.
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