July MLS Trends

According to this table of trends, Denver’s residential market is still tough to read against the post government rebate numbers of Spring 2010, but the striking number is inventory at 25% less than last year. At our current sales pace, we have about 6 months inventory, a Buyer/Seller balance, although that dynamic is price, condition and location specific. Some areas are hot; others definitely not.
“Pending” status describes properties in Bank Owned or Short Sale processes; note the 1:3 ratio of those homes vs standard individual sales Under Contract.
Average Days on Market is a tricky number since “average” can be little indication of insight. For example, homes accurately priced, about 1/3 of properties, sell within 30 days. That’s another indication of a vibrant market as long as Sellers are realistic and have their property in at least par condition, if not, then priced accordingly. About 40% of properties linger on market for more then 90 days, thanks to being over priced. These homes are the ones the media talks most about, hardly the full story.
As we look toward the balance of the summer market, the Triple A US Debt Downgrade will likely have little effect on mortgage rates, although some effect on consumer confidence. That spells opportunity for those looking to monitor the real estate market for Sellers who have recently become more motivated….timing is everything !

Price Mix in June 2011 residential sales shows the strength at the core of the spectrum, $200,000-300,000, at 27% of the entire market’s Buyers, the single largest group. Trailing off quickly at $500,000 and above, the top tier group makes up only 10% of the market. A classic bell curve trend that shows the $100,000- 200,000 range combines for a total of about 25%. Denver’s Median Price in the lower $200,000’s is not addressed, often reported less accurately as the Average Price in the upper $200,000. True center of market, the median, includes the upper price sales, but is not swayed by their pushing up the average.

All transactions in this sketch are single family residential, excluding condos completely.