As we do at the beginning of each month, we pull raw data from the MLS and run it through our own statistical filters to get a handle on the condition of the Denver area housing market.Here are highlights from this month's snapshot:
* Homes priced below $250,000 currently account for 28% of all listings and 60% of all sales
* Below $250,000, there are just 1.41 active listings for sale to each one currently under contract
* Homes priced between $600,000 and $1 million currently account for 15% of all listings and just 3% of all sales
* Above $1 million, there are 24 active listings to each one currently under contract
Each of these snippets tells a story, but in short, the song remains the same.
Although overall listing inventory is down 20% from a year ago (as foreclosures become more scarce), it's still all about the lower end of the market.
There is currently just a 2.60 month supply of homes below $250,000, compared to a 45 month supply of homes priced above $1 million.
Higher end home sales depend on a strong economy (we don't have it), consumer confidence (not good) and availability of credit (tightest lending standards in 20 years). Until these conditions are corrected, the higher end of the market will remain distressed, and values will continue to erode.
As I mentioned in a previous post, there are really three totally distinct categories within the larger Denver metro housing market.
The low end is hot, the middle is warm, and at the top we're a long way from recovery.
How we approach your situation depends on what segment of the market find yourself in. But it takes specialized knowledge to navigate this market, and if your agent can't articulate what you've read in this space, chances are you are working with someone who doesn't understand what's going on.
