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RSS FeedDenver Market Conditions December 2006 |
Posted at Denver Real Estate Blogspot by Judith Clausen
Jan. 16, 2007
Categorized in: Denver Market Info
Tagged with: december 2006 sales and prices, denver real estate market
2006 was a slow year for real estate sales in the Denver metro area. Colorado’s high rate of foreclosures prevented home values from rising more than 2.7%, not enough to keep up with inflation (3.8% for the first six months of 2006). The likely scenario is that large number of foreclosures will continue to hinder any rise in appreciation for the next year to 18 months until the market absorbs the foreclosure inventory, maybe longer if the rate of foreclosure worsens (as local economist Tucker Hart Adams predicts) rather than stabilizes. The 2.7% appreciation rate for 2006 resulted in an average price for all homes of $288,916. If not for the 19,425 foreclosures, prices likely would have risen higher. Inventory is still high, giving buyers almost too many homes to view. For some, it’s hard to make a decision when there are more than three or four good options. Several recent clients have taken well over three months to decide. Two have made market price offers that were rejected by sellers. These particular buyers didn’t let that discourage them, and made good offers on other homes where the sellers were a little more realistic in their expectations. It’s a much slower process than it was in Denver in the ‘90’s when offers were coming in at the rate of three or four at a time.
Single family homes sold in December for an average price of $321,524 for a rise of 3.5% over November. The median price in December was $247,500, or 3.1% higher than November. Condos sold for an average price of $180,084, down from November’s $195,747 by 8%. Median price was $150,000, also down from November by 3.8%. Median price is a better indicator of value than averages, which include extremely high and extremely low prices.
Single family residential homes took an average of 111 days on market before selling, while condos languished longer at 122 days on market.
Let’s face it, the Denver market is flat, maybe declining, which makes it a very good time to buy.
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