Denver Real Estate ~ Take a close look at the sales statistics for real estate sales in the Denver Metro area. At first glance the average sale price has dropped $55,251 from a year ago ($267,259 from $322,510). That is a huge drop that would indicate values have dropped considerably.
But Wait! Let’s look at the Percentage of Sold Properties by Price Range:
Notice the lower prices ranges (single family), everything under $150,000 has seen an increase in volume this year.
Now notice the drop in sales of homes over $500k. We are selling the same number of homes, we are just selling them in the low end of the market.
The decline in value is due to the number of lower end homes we are selling coupled with the decrease in the higher end. A glut of low end sales will skew the average price, pulling it down and giving an inaccurate picture of the market.
Interestingly the middle of the market has not been effected.
First time home buyers, investors are in the market. They are scooping up the low end real estate. Savvy buyers know how to buy (low) and sell (high). People who continue to put their trust and faith in the news media will be saying in a few years, “Gee I coulda bought that for $xxx, but now the market has passed me by and I can’t afford to purchase a home.”
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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Kristal Kraft
3 Comments
your logic is flawed as the only way to
know for sure is to check and see what the
prior sales was for each home. i can give you a ton of data which will show a large decrease in values for certain areas within the greater denver market. there are pockets of large declines in the market. Example–Green Valley Ranch— might there be a glut of lower end sales due to an overall decrease in some area values??????????????? it may or may not a bad time to buy but people should do there homework and collect from more than one source
Brian ~ thanks for pointing out the only way to determine if a home’s value has dropped is by individual analysis. This we know is true. My reference is to the market as a whole. If you read the general media they are not referring to individual homes, they state home prices have dropped by xx amount! That is what this post is referring too.
Thanks for stopping by.
The decline in value is due to the number of lower end homes we are selling coupled with the decrease in the higher end. A glut of low end sales will skew the average price, pulling it down and giving an inaccurate picture of the market.
Do you think that the reason there are more lower end homes selling is due to a decrease in values???? IN SOME AREAS VALUES HAVE DROPPED CONSIDERABLY AND FOR YOU TO IMPLY THAT THEY HAVE NOT IS DISHONEST. I have no idea where you practice your craft but i can show you areas where median values within size segments of the market have decreased considerably.
Thanks