Since my last blog entry I've had to take a break to cope with my husband's illness and death in September. It's been a difficult time over the last several months. But I'm ready to begin again. Thanks for the many messages of sympathy and hope.

In this entry I'd like to share with you an email I sent to some clients. You'll see what their needs are and how the market is (or isn't) meeting them.

Dear Jake and Sandra,

I got your email about your house hunt. You need a 2 car garage, 2+ bedrooms, 2+ bathrooms, a patio or small yard, HOA fees under $250, 1000+ square feet, a townhome not a condo, not on a busy street or less than desirable neighborhood, something that will likely hold value, and preferably move-in ready. That's from what you said in your email and what you and Jake have said during your house hunt. That's a tall order!

Here's the statistical data for September.

As you can see, inventory is down from last year this time 17.09% overall, 11.77% for condos (includes townhomes, patio homes, condos). Drop in inventory from June 2009 is 4.5%. Average sold prices are up 4.88% overall and 3.91% for condos. Average days on market is decreasing 1.02% for condos. The market absorption rate is currently 5.15 months, meaning we have a housing supply that will sell out in 5.15 months at the rate houses are now selling. A buyer's market is when you have 7+ months supply, and a seller's market is a 1-4 months supply. The picture is one of housing recovery, meaning it's moving from having been a strong buyer's market to more of a normal market and the direction expected is a slight seller's market in the spring.

The truth is that our market is heading into its holiday/winter hibernation. Inventory is limited. The bad news is that after you look at what I've sent today there are no more to consider. They'll come in by dribs and drabs after this till March when things begin to pick up again.

More data to look at is the average sold price. That includes all foreclosures, bank owned, and normal sale condos. Of what's been sold in the last month approximately 45% are townhomes and patio homes. The rest are condos. In September the average sold price for townhomes/patio homes was $211.420, with a net sold price after seller concessions of $209,169. For condos it was an average of $171,421 and a net sold after seller concessions of $169,454.

So you can see that your desired price is well below average, which will get you a below average townhome in terms of your needs. That's why I was so excited about the three places we saw earlier this week that were in your price range and had most of what you wanted.

Jake, you'd like to look at a few foreclosures or bank owned properties. You'll see a few in the places I've sent from the MLS. That's what's out there in your price range. The problem with foreclosures is what I said to you earlier.

They can take many months and even then often end up unraveling due to bank inaction or a late decision to let the home proceed to auction. Many folks believe that a buying a foreclosure is a good value. Good homes in good locations in good condition but also under the threat of foreclosure often command multiple offers at above the asking price. The remaining foreclosures on the market are usually substandard.

Bank owned properties, where the home has already gone through foreclosure, are a little better but because of the huge number of foreclosures across the country the banks, which more likely than not are large financial institutions throughout the world, are very slow to act, and again, it can take months. These institutions are not set up to deal with investment failures and don't have a smooth mechanism to deal with foreclosures. There are brokers out there who specialize in these REO sales, but I'm not one of them. If you need someone who does I can refer you to a great guy here in the area. Just let me know.

So that's the bottom line about the market in which you're looking for a place to live. If you have any questions, and I'm sure you will have, just ask away. I'll be happy to answer.

My advice is that you look over what I've sent today, decide if you want to see any of them, and then see those plus the three Sandra and I saw earlier this week that are possibilities. I don't mean at all to pressure you, but this is the best time to buy if you want to buy.

Best of luck,

Judith

Obviously they're looking for a townhome. But the market is similar for single-family homes. New statistics will be available for October sales in early November. Stay tuned for more news of what's happening in Denver real estate.