Denver and National Trends
This December showed a slight improvement over December 2002, however, as with the previous months of 2003 statistics were inconsistent. Over 500 more housing units were sold in December 2003, over December 2002, but the total available inventory increased by 1,000 units. The absorption rate decreased by 3 weeks, while the days on market increased by 12.5 days. The average market price went up $7,900 from last December to this December, and the median price increased 2%. All of these statistics signify a market swimming in circles, which is better than it could be. As new home builders continue to decrease new home starts (40% less in 2003 than 2001), the amount of properties available for an economic recovery will lesson. The highest number of homes sold in any price range remained $200,000-$250,000, reflecting low interest rates serving the needs of first time buyers.
Nationally, the housing picture remains bright. At the end of the 3rd quarter, seasonally adjusted sales were 12.8% ahead of 2002, with 6.3 million sales possible when the year end reporting is complete. The supply of available housing (absorption rate) is less than 15 weeks and has been close to that level all year while the local supply has been 22 to 30 weeks during 2003.
submitted by Larry McGee
http://www.theberkshiregroup.com
Kayaking at Confluence Park in Denver
Real estate trends in Colorado
Trends revealed by potential new home buyers include:
* One in four home buyers rates proximity to work as a very important factor in their home-buying decision and would take a smaller lot for a shorter commute.
*Nearly two-thirds of home buyers are seeking less outdoor maintenance on their homes. As a result, more buyers are focusing on attached housing like condominiums or town homes. Thirty-two percent of new-home sales were of attached homes.
*Square footage of a home is very important to buyers between ages 25-44, with 63 percent looking for bigger homes. For buyers younger than 25 and older 44, emphasis on square footage declines dramatically.
* A majority of buyers in each age group would sacrifice some square footage for upgraded amenities.
* Nearly 75 percent of buyers would opt for a smaller home with a basement rather than a bigger home without a basement.
* Nearly two-thirds of buyers would prefer a great room over a formal living room. That preference increases with buyers older than 65.
* Three-quarters of buyers are willing to spend an extra $2,000 on their home in order to increase energy efficiency and reduce utility bills.
* Nearly two-thirds of buyers are willing to spend an extra $2,000 to live in a home built with materials that will reduce allergic reactions or other health problems.
*One-third of buyers are willing to spend an extra $2,000 to live in a home built with some recycled materials.
Source Genesis Group researchers surveying a sample group of 2,000.
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