November statistics show the average and median price for single family homes continues to drop. The explanation is very evident, 75% of the sales closed are under $300,000. A year ago only 69% of residential sales closed under $300,000.
In 2007 only a 8.5% of the sales closed in October were under $110,000, this year the number has increased to 18%!
This huge increase is a reflection of what I’ve been reporting for months, the market is great for first time home buyers and investors.
The question on the minds of many who are still standing by, “When will we hit bottom?”
The answer is Past Tense Folks!
We hit bottom last April/May. The Denver real estate market (in general) is on the way up. Our market would be in much better shape if the financial market would loosen up funds.
Average days on market for homes under $200,000 continues to drop. What we are seeing here is a SELLER’S Market.
As prices increase the days on market also increases. Homes priced over $500,000 are lingering on the market longer as time passes. This is a result of the changes in lending requirements. Buyers now need to have a down payment, so naturally the higher the price the higher the down payment. The upper end of our market is slow, very slow. Here is were we find a BUYER’S Market.
What I’m Seeing in The Denver Real Estate Market
Cash is king and there seems to be a lot of it being spent on real estate. A couple weeks ago an associate of mine wrote a full price, no contingency offer to close within a month on a nice older home. They were astounded to learn they were beat out by a cash offer.
Typically cash is not a common way to purchase real estate. 98% of the time buyers use some sort of financing. Now that the stock market is iffy and interest rates are low, buyers are using their cash for real estate.
It only makes sense. Buy low sell high, who said it first? I don’t know, but he certainly was talking about the current Denver real estate market.
The window is closing.