Real Estate Market Update

Taking a look at the market through the 30th of April there is definitely good news.

Arapahoe, Douglas, Denver, and Jefferson Counties all show improvement 2010 versus 2009. Days on market has dropped and sales volume has increased in all 5 Counties.

Percent homes are on the Market

This is a positive sign. There is some additional data that will temper this news a little. The month’s supply appears to have increased in some areas as inventory has risen. In general there is about a 6 month supply in those counties. It a little higher in the rural areas roughly around a 10 month supply.

Based on what I am seeing the market still favors buyers more than sellers if you are comparing single sided transactions. Where it can balance for a seller is when you are buying a replacement home. Highlands Ranch continues to be a bright spot both in time to sell and percentage of sold price to list price. I will also say that appraisals in Highlands Ranch seem to be doing better than the average.

The biggest unknown right now is how much inventory is being stockpiled in pending foreclosures. I have not seen any improvement in the processing of short sales so we are likely to see more bank owned properties coming on the market over the next 12 months. I will say I have not seen the predicted “massive shadow inventory” that was supposed to hit in the first quarter of this year so that has been good. The original prediction was a doubling of inventory almost overnight. This is important as one foreclosure in a single neighborhood can have a dramatic temporary impact on values so a multitude would be a real challenge.

If you are wondering if now is the right time to sell I will do a thorough market analysis on your entire market area to help you decide whether or not to put your house on the market. If you decide to put it on the market then let’s put our best foot forward in marketing, home preparation and staging, and in pricing so your house sells quickly and you can avoid getting blindsided by a foreclosure.

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