Denver real estate – 2009 January statistics show median price decline

As statistics are being reported for the first month of the year, it seems there is nothing but more bad news.

Sales of single-family homes and condominiums totaled 2,469 in January, down 17 percent from January 2008. The median sale price of single-family homes and condos sold during the month fell about 16 percent from last year to $181,500 and $113,000, respectively. The figures were derived from Multiple Listing Service data.

Although the median price for properties dropped sharply in January, company analysts stressed that doesn’t mean the typical home has declined in value that much. Instead, the lower median is due to a changing mix of homes that are selling these days. Fewer million-dollar home sales, coupled with increasing sales of discounted, bank-owned properties, have resulted in a lower median price – the midpoint of all sales.

However a closer look at the market will reveal the median price is down and why.

Median price is the point at which exactly half of the sales are above and half below. Where they meet is the median position. Last month as we have been seeing for several months the majority of sales occurred in the lower quadrant of the real estate market.  A quick look at graphs of market activity by price will tell the story:

Denver real estate sales is seeing 75% of the activity below the $300,000 mark, with significant sales under the $110,000 mark.

Condo/townhome sales are showing similar results:

Inventory levels have dropped as well. Comparing 2009 inventory to last year, Denver real estate has dropped to 19,748 units, a 20% drop.

To many this 19,748 may seem like a huge number, but the reality is these homes are spread over a huge market, 7 counties with diverse price points.

As a buyer looking to purchase a home, much of the Denver metro neighborhoods are experiencing a shortage of homes available to see.

Working as a buyer’s agent we see more poorly done homes than nice ones. This fact alone gives a seller who properly stages and prepares a home for the market a huge advantage.  Finding a clean, fresh home is such a relief to a buyer after traipsing through nasty, dirty short sales and REO’s. It certainly makes choosing a home easier when there are so few nice ones available.

Optimism is the key word for Denver real estate. As we watch the rest of the country suffer with significant declining values, our market is not seeing the same significant decline.  Assuming Congress passes the housing stimulus bill soon and interest rates continue to remain low, we should be able to count on a decent amount of real estate sales in the near future.

In fact I believe there is a strong possibility we shall see a seller’s market with increasing prices in some prime (under $300k) areas soon.  Homes in the over $500k range are not going to experience a seller’s market for awhile.

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

Related posts:

1. Median Price Charts for Denver, Englewood and Littleton Real Estate
2. January Real Estate Sales Statistics
3. April 2008 Statistics for Denver Real Estate sales
4. Denver Real Estate – Listings by Price Range
5. Denver Real Estate – Top Selling Neighborhoods in 2009