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RSS FeedDenver Market Conditions August 2007 |
Posted at Denver Real Estate Blogspot by Judith Clausen
Aug. 14, 2007
Categorized in: Denver Market Info
Denver’s market is beginning to show signs of recovery, but not in prices. The median price of a single family home dropped 3.1 percent from June to $255,000 and from $259,500 last July, a 1.8 percent drop. But fewer homes were on the market in July 2007 than in 2006 by 5.4 percent. July was the seventh consecutive month to show a drop in the number of homes left unsold.5,951 homes were under contract in July, 7.5 percent higher than July 2006 when there were 5,538 under contract, showing growing demand. The number of homes sold and closed also increased, from 4,850 in July 2006 to 4,980.
The number of foreclosures has dropped overall, likely due to high numbers of homes being sold at auction. During the first weekend in August 300 homes were taken off the market from auction activity, reducing the number that had been flooding the market. It will still be some time before foreclosures are fully absorbed. Together with resale homes not under foreclosure, the total number is some 30,000 on the market, a far cry from the 9,000 inventory in 1999 at the height of Denver’s double-digit increases in sales prices. Of course, population increase has contributed to the increase in number of unsold homes on the market, but nowhere near the contribution by foreclosures.
Fewer buyers are looking for homes which impacts inventory and prices, and those who are looking want bargains. Buyers still have many choices of homes available to them, and don’t have to be in a hurry to buy. This week I showed homes in Aurora’s Hoffman Town to a couple relocating from California. This is a neighborhood changing rapidly with a disproportionate amount of “fix and flip” homes emptied by borrowers adversely affected by the sub-prime mortgage meltdown. Investors have stepped in and swooped up these low-priced homes close to the Denver metro area’s newest medical center complex at the former Fitzsimons Army base. Many are still available for sale, so many that I told my buyers if they weren’t quite ready yet to buy, they could be assured of a steady stream of these spacious remodeled homes so close to a major medical redevelopment.
In contrast to single family homes prices, condo sold prices (which include townhomes) rose to $192,885 from $186,328 in June, a 3.6 percent increase, but dropped slightly from last year’s July price of $194,705.
Average prices for single family homes in July 2007 dropped from $334,833 in June and $328,721 in July 2006 to $316,024.
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