In July, the Denver area real estate market lost a little, gained a little, and, on balance, remained pretty much the same as seen in June. There a few interesting tidbits not reflected in the statistics presented below:

1. The percentage of sold and closed homes priced under $110,000 increased a whopping 9% from June. What kind of buyer type do you suppose is suddenly buying bunches of low priced homes?

2. The fallen transaction rate has declined for 3 straight months. That could be because lenders are getting better at completing low end FHA loans, or maybe because certain sophisticated buyers are less picky about inspection issues.

3. In July there were more sales than in June, however the the average and median price fell. Note #1 above.

4. The Denver area resale home market appears to be stabilizing. Sellers that do not have to sell are avoiding the market rather than lose equity positions. New home builders have cut building starts by 50%, qualified home buyers are selecting the best homes in every price range, and investors are buying the low priced product.

5. If the capital markets stabilize and the media slows down their incessant prattle on the home crises (perhaps a Presidential election will capture the media’s attention), at least the Denver area may begin a modest recovery next year.

Denver Market Update for July, 2008

● Metro Denver Prices:

Single Family Average Price: Jul 2008 - $283,860
(Detached Dwelling) Jun 2008 - $286,887
Jul 2007 - $316,024

Condo Average Price: Jul 2008 - $169,474
(Attached Dwelling) Jun 2008 - $190,367
Jul 2007 - $192,885

Combined Average Price: Jul 2008 - $262,225
Jun 2008 - $267,005
Jul 2007 - $289,294

● Percent of Sales Price Change: Single Family : -10.18%
from Jul 2007 to July 2008 Condo : -12.14%
Combined : - 9.36%

● Total Combined Number Jul 2008 - 25,673
of Homes for Sale: Jun 2008 - 26,104
Jul 2007 - 30,272

● Percent of Change in Available Inventory: -15.19%
(Jul 2007 vs. Jul 2008)

● Total Homes Under Contract:

Single Family Condo

Jul 2008 - 4,764 Jul 2008 - 1,114
Jun 2008 - 5,091 Jun 2008 - 1,217
Jul 2007 - 4,698 Jul 2007 - 1,253

● Number of Combined Homes Sold this month Jul 2008 - 5,123
vs. previous month Jun 2008 - 4,845
vs. same month last year Jul 2007 - 4,980

● Average days on Market: Jul 2008 - 97.57
(Combined Sales) Jun 2008 - 96.88
Jul 2007 - 94.78

● Absorption Rate: (# of weeks Jul 2008 - 21.72 weeks
necessary to sell current combined Jun 2008 - 23.35 weeks
inventory at current rate of sales) Jul 2007 - 26.34 weeks

● Median Sold Price: Single Family Condo

Jul 2008 - $229,200 Jul 2008 - $149,000
Jun 2008 - $230,000 Jun 2008 - $148,345
Jul 2007 - $255,000 Jul 2007 - $158,000

Written by Larry D. McGee, Denver Realtor - Visit Website Sphere: Related Content