The Pulse

Denver Area Home Sales Data for February

March 8, 2010 by Larry D. McGee · Leave a Comment 

The raw data for the resale home market in Denver was released today by Metrolist, Metro Denver’s MLS Service provider.  The report below is assembled from Metrolist data. Positive news is evident in most categories, including year over year and month over month increases in average and median price.

The Denver area’s inventory of available homes to purchase continues to decline year over year, with February showing 5.93% less homes on the market than one year ago.  This is an extraordinarily small amount of homes available for the Denver market, especially considering the low number of new built homes being constructed at this time.

The reasons for this low inventory are many,  such as high unemployment making it difficult to sell, a lack of financing available for home loans in the $400,000 to $1,000,000 market, a lack of equity for many home owners that must remain in place until a rise in market prices creates enough usable equity to allow a sale of the present home and a purchase of a more desirable one.

The February stats are below.  Questions? Feel free to contact Larry McGee at 303-513-1436

Denver Market Update for February
Denver Market Update for February, 2010

● Metro Denver Prices:

Single Family Average Price: Feb 2010 – $269,688
(Detached Dwelling) Jan 2010 – $260,530
Feb 2009 – $236,920

Condo Average Price: Feb 2010 – $166,206
(Attached Dwelling) Jan 2010 – $157,701
Feb 2009 – $138,239

Combined Average Price: Feb 2010 – $247,471
Jan 2010 – $238,155
Feb 2009 – $218,010

● Percent of Sales Price Change: Single Family : 13.83%
from Feb 2009 to Feb 2010 Condo : 20.23%
Combined : 13.51%

● Total Combined Number Feb 2010 – 18,869
of Homes for Sale: Jan 2010 – 17,465
Feb 2009 – 20,059

● Percent of Change in Available Inventory: – 5.93%
(Feb 2009 vs. Feb 2010)

● Total Homes Under Contract:

Single Family Condo

Feb 2010 – 3,459 Feb 2010 – 955
Jan 2010 – 2,883 Jan 2010 – 807
Feb 2009 – 3,352 Feb 2009 – 831

● Number of Combined Homes Sold this month Feb 2010 – 2,436
vs. previous month Jan 2010 – 2,353
vs. same month last year Feb 2009 – 2,484

● Average days on Market: Feb 2010 – 95.44
(Combined Sales) Jan 2010- 88.91
Feb 2009 – 107.38

● Absorption Rate: (# of weeks Feb 2010 – 33.57 weeks
necessary to sell current combined Jan 2010 – 32.16 weeks
inventory at current rate of sales) Feb 2009 – 34.99 weeks

● Median Sold Price: Single Family Condo

Feb 2010 – $220,750 Feb 2010 – $132,500
Jan 2010 – $210,000 Jan 2010 – $130,500
Feb 2009 – $192,000 Feb 2009 – $117,725

Denver’s Economy Now

February 15, 2010 by Larry D. McGee · Leave a Comment 

Denver Unemployment

As anticipated, the number of people counted as officially unemployed in the Denver area rose to 7.5% in December.  A consensus among local economists is that the unemployment rate will continue to rise slowly  during the first during the first half of 2010 before receding in the second half of the year.  The local unemployment picture remains considerably better than the national scene. The unemployment rate affects the housing market by both reducing the number of actual home buyers, and by diminishing the confidence level with the average consumer that you need to sell your home in Denver.

Denver Housing Inventory

The Denver area resale housing inventory remains below the same time last year, creating unusual stresses on the market.  Sales under $300,000 remain strong in light of the Federal Tax Credit due to expire on homes purchased after April 30 of 2010 and the very low interest rates available to first time buyers.  New home starts remain mired in the quick sand of unsaleable inventory, but builders are adjusting by offering new lower priced models. The local new home market will improve slightly during 2010. There is also consensus among most economists that the recession ended at the end of the third quarter of 2009.  Fro those without a job, that is a somewhat meaningless statistic, but it does indicate that things are getting slowly better.  Most economists agree that the nation is over indebted, while Congress votes to increase the debt by another few trillion.

Key Economic Statistics

• New Home Starts: YTD* Dec. 2009:  2710   (down 31% from 3950 YTD December 2008)  ↓

• Mortgage Rates:       4.97%. down from 5.01 the week before, and from 5.16 STLA*  ↓

• Average Single Family Home Price up 12.85% from STLA         ↑

Jan. 2010            $260,530 Jan. 2009            $230,878

• Employment Statistics from Dec. of 2009    Unemployment rate up to 7.5%    ↑

Dec. 2009 Labor Force:  1,357,177               Employed:   1,255,678 Dec. 2008 Labor Force:  1,396,492               Employed:  1,307,858

• Consumer Price Index: National index at 215.949  up 2.7 from December of 2008.  ↑

The Denver area local index stood at 207.44 a the end of the first half of 2009.  New Index  numbers will be available in the second half of February. * STLA means “same time last year” *YTD means “year to date”

Denver Real Estate ~ January 2010

January 13, 2010 by Larry D. McGee Denver Realtor · Leave a Comment 

“The Pulse” is a monthly statistical update of  available data.

A very low active resale inventory coupled with an extraordinarily low number of new home starts has combined to reduce the total homes available for purchase, and home prices in the Metro area began to increase in the latter half of 2009. The Denver market is bifurcated, as is much of the nation, with most home sales occurring in a price range below $300,000.

Statistics for the Metro Denver Real Estate Market

• Consumer Price Index:     .09%  down from 3rd quarter 0f 2008                     ↓

• New Home Starts  Nov. 2009:   2440   (down 35% from 3770 in 2008)          ↓

• Employment Stats Nov. 2009:     unemployment rate at 6.8% ↑

2009    Labor Force   1,365,749                   Unemployed      1,272,288

2008    Labor Force   1,404,928                    Unemployed     1,326,390

• Mortgage Rates (1-15-2010)     5.1% virtually unchanged from STLA*        ↔

AverageSingle Family Home Sold Price:   Up 16.94% over STLA*    (December 2009)    ↑

December 2009                 $255,847

December 2008                 $225,257

*STLA is “same time last year”