Home Inventory Drops More than 32 Percent from January 2012 as Average Price for Single-Family Homes Exceeds $300,000
Posted by Douglas E. Lierle — February 28, 2013
Denver, CO – The table is set for homeowners who are planning to sell their homes during the peak spring home selling season. The number of single-family inventory homes available in the metro Denver area has dropped to just over 7,000 in January, compared to more than 10,440 in January 2012, according to Denver Metrolist. The median price for single-family homes has soared to $300,827, compared to $272,328 in January 2012.
The Denver area had a total of 1,260 condominiums on the market in January, down nearly 40 percent from a year ago. There were a total of 309 condominium contracts pending, and 610 condominiums were sold in January 2012.
A total of 2,953 homes sold in January, a 20 percent increase over a year ago. The number of homes that went under contract in January jumped 43 percent from December. The number of days on the market dropped to 78, which was 25 percent less time on the market than the 104 day average for January 2012.
“With interest rates still at or near historic lows, there has never been a better time to sell with the spring season just around the corner,” said Peter Niederman, Chief Executive Officer of Kentwood Real Estate. “I cannot recall inventory numbers being this low in more than two decades, and with prices increasing, homeowners wishing to sell are in a very good position. However, as the economy continues to rebound and the housing market continues to strengthen, interest rates will most likely rise at some point.”
January 2013 inventory was down 32.1 percent from January 2012 to just 7,706 available homes. There were 2,953 closings in January 2013, a 19.6 percent increase from the 2,470 in January 2012. There were 4,431 homes placed under contract in January, a remarkable increase of 43.4 percent from the 3,090 in December and a 27.1 percent increase from the 3,480 in January 2012.
“Homeowners wishing to sell should take advantage of current market conditions,” said Niederman, “but they need to work with an experienced real estate professional who will find them the right home to purchase at a fair price if they are planning on staying in the Denver area.”
Niederman was recently featured in an article posted on InsideRealEstateNews.com written by John Rebchook, former real estate reporter for the Rocky Mountain News. In addition, Larry Hotz, a Kentwood broker in the company’s DTC office, was featured prominently on the Thursday, February 7th broadcast of CNBC’s Power House show. Hotz’s most recent data showed just 5,804 active listings for the Denver area, with a total of 958 homes under contract. A balanced market usually has about three months of inventory, but current numbers suggest only a six week supply.
“Statistics point to a good market for sellers and a challenging environment for buyers competing for a limited number of properties,” said Niederman. “It’s important to note that not all neighborhoods and price ranges are experiencing similar price appreciation, so buyers and sellers alike need to do their homework or retain the service of a knowledgeable real estate professional.”
Kentwood Real Estate is dedicated to its legacy of being “Colorado’s Premier Real Estate Company” through the highest producing, most knowledgeable, caring and experienced sales team in the country, offering the highest quality customer service experience. Kentwood Real Estate is an innovator known for unparalleled marketing strategies and superior Internet technology that places its clients in the best possible position.
Kentwood Real Estate is comprised of The Kentwood Company in the Denver Tech Center, The Kentwood Company at Cherry Creek, and Kentwood City Properties in downtown Denver. For more information, visit Kentwood Real Estate online at www.DenverRealEstate.com.