Days on Market by Price Range

Absorption rates change from neighborhood to neighborhood, but also with price ranges. Of course it makes sense that homes in the lower price ranges are available to a greater number of buyers, so they should sell quicker because of a larger pool of available buyers.

Denver real estate statistics indicate on average it is taking 2.5 times longer to sell homes over the $500,000 range than under the $300,000 range.

The largest price segment of inventory is the $300,000 – $499,000 price range. Above this price inventory drops off significantly.

As a buyer, what does this mean?

Well if you are fortunate enough to be able to purchase a home in the higher end of the market, assuming you can find a seller who seriously needs to sell, you might find yourself with a nice bargain.

If you are a buyer in the lower end of the market, (low being under $300,000), due to the competition for homes in this price range plus the lack of available homes, you might find yourself competing with another buyer when it comes time to write that offer.

Don’t be surprised when homes that have been sitting around on the market nearing an anniversary date with their listing agent, sell.

I had that happen to me just last week. I home that had been on the market since last November received two offers on it in the same weekend.

We bid low and lost.

So instead of ending our search, we raised the price looked at a dozen more houses and found one my buyer really liked.

This time he gave a bid very close to the asking price. We got it.

So once again I confirm there are no set rules in real estate. We go forth with the data we have, expecting certain results. Sometimes we get them other times we are surprised to get something totally different.