Wednesday, March 6, 2013
Metrolist: Sellers' market in metro Denver challenges buyers
Home Buyers Continue To Be Challenged in Denver Housing Market, Sellers Reap Benefits DENVER – March 6, 2013 –The latest data from Metrolist®, which powers REcolorado.com, a free resource for Colorado home buyers, sellers and owners, reveals a 4 percent drop in housing listings from January of this year, bolstering home prices throughout the winter months. The close of February marked the eighth continuous monthly decrease in available homes.
Last month, just 6,786 homes were available, a 33-percent plunge from February 2012 inventory levels. Home prices, however, have not only increased 11 percent from a year ago, but have remained steady with gradual increases throughout the typically slower winter months. Stable home sales have led Metrolist experts to believe that lower inventory levels are positively impacting the market. “We continue to see decreases from already historic low inventory levels,” says Kirby Slunaker, CEO and President of Metrolist. “Denver’s inventory situation reflects the trends we’re tracking nationally. We’re carefully watching the available inventory to see if these trends drive more potential sellers to list properties as we approach the beginning of the spring selling season.”
In February of this year, the average days on market (DOM) increased 3 percent from the previous month, another indicator of both seller hesitation and the Denver buyer’s difficulty in finding a new home. Despite homes under contract climbing 14 percent since January of this year, Denver-area buyers and sellers are finding themselves in an interesting position, says Metrolist Board Chairman Gary Bauer. “We saw another decline in available listings, but the rest of the market is up,” says Bauer. “Inventory levels haven’t been this low since 1985, but February was a nice kick-off to the spring season.” The average sale price this February was $276,596, up 1 percent from January during anticipated seasonal slows. “We’ve noticed a continual increase in average sale prices, and I expect that trend to continue throughout the summer buying season,” said Slunaker.
“Denver’s current housing market could be summed up by a basic economic principal—it’s supply and demand.” Given the current inventory situation and the upcoming National Open House Weekend happening in April with the National Realtor Association (NAR), new listings will be at a premium. All new offerings will be listed at REcolorado.com, so buyers and sellers can enter the market more prepared for this critical selling season. Low inventory levels mean Denver-area buyers and sellers should do thorough research when preparing for a sale. REcolorado.com offers Colorado buyers, sellers and owners up-to-the-minute local housing data on a free, intuitive, online platform. Buyers can find an agent, browse through available listings, and search for open houses. Sellers will find the REcolorado.com home value calculator invaluable when listing their property.