Originally published back in October 2012, this post looked at Denver metro area sales statistics. Helpful information for seeing the course of events leading to 2023.
Denver Post Looks Back At October 2012
On Wednesday November 14th, 2012, the Denver Post had an excellent article about the metro area real estate market, including the Boulder/Denver corridor. Prices are up, days on market are down and parts of the metro area are seeing prices rebound to 2006 levels – the high point for the Denver real estate market.
Home Prices are up in Denver/Boulder metro corridor
This week, Land Title Guarantee Group released its latest data, which supports the Denver Post article and confirms the vibe on the street. The real estate market is doing quite well. Buyers that can qualify for mortgage financing are taking advantage of the extremely low interest rates and purchasing.
For those buyers, they are finding that homes are selling much more quickly.
October 2012 Home Buyers Had It So Good
Buyers need to be ready to act, and even in some cases, compete against multiple offers for the home they want. It is taking far fewer days for homes to go under contract. And even as the housing inventory is lower than a year ago, the number of homes being sold this year has increased. Within a year of writing this, our market would be in a full fledged Seller’s Market, moving at light speed within a few more years.
Home sales are up, inventory is down and days on market for an average home is reduced by a third.
Through the 31st of October 2012, the number of sold homes (not including condos) is up by nearly 31%. That’s an increase of an additional three thousand, two hundred forty six homes sold in the Denver metropolitan area in 2012 versus 2011. At the same time, the number of days required to sell a home has dropped by a third. This has greatly reduced the absorption rate for the Denver/Boulder corridor. In effect, a year ago there was a good argument to be made that it was a buyer’s market.
The absorption Rate is about half what it was a year ago. When absorption rates are under three months it indicates a seller’s market. Still, it is also November, a time of year when real estate traditionally sees fewer homes listed for sale and fewer buyers completing transactions. As we enter the first quarter of 2013, it will be important to see how inventory and closed transactions continue or if the current trend is merely a reflection of low interest rates meeting low inventory at year’s end. While rates remain low, now is the time for buyers to get off the fence and buy!
Want to find your dream home? Contact Bob Gordon to create a custom home search and discuss the Boulder real estate market.
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