Denver Real Estate; At Least Part of the Market is Selling!

Denver real estate statistics for the first half of the year have been compiled.  It is interesting to see how the lower end of the market is very strong and as the price goes up, the sales weaken.

Also look at how the first part of the year sales under $100k, $200k and $300k were very strong and dropped significantly in March, continuing to drop each subsequent month.  My bet is that part of the market has been soaked up by investors.

I also see how the trend begins to trickle up in price, lower end homeowners selling in order to move up.  Soon we hope to see the trickle up effect the upper end, which right now is very slow.

June2009-DenverRealEstate-price The next chart illustrates Days on Market.  With only a couple exceptions ($50k to $110k)  June has seen less days on the market in every price range.

I venture to guess the problem within that price range is condition.  Homes currently on the market are foreclosures that are in very poor condition.  These naturally stay on the market longer, because first time buyers can’t afford to repair them.

Investors may not be willing to assume the risk, so they sit until the seller decides to price for the market, meaning reducing the price to compensate for the condition.

Sometimes owners (banks too) figure this out, but it takes time.

The market speaks, when a property doesn’t sell, it’s time to reduce the price.

June2009-DenverRealEstate-DOM