April’s housing report was released on Friday and I think this metaphor really makes sense when you look at the data. It’s 4 A.M. on the day after Thanksgiving and you really want that 50 inch TV for $599 at Wal-Mart, what will you do to get that TV? That’s how a majority of home buyers in Denver need to be thinking and strategizing about currently.
Denver home buyers need to know exactly what they are looking for in a home and where. Second, they need to know what they can truly afford in a total house payment and commit to staying at that payment or lower. Next, they need their credit card (strong pre-approval letter) or cash in hand. Fourth, they must move quickly when a new home comes up for sale. Finally, they have to make a decision quickly.
Home inventory levels are down 42.5% from April 2011 to just 10,254 unsold homes on the market, down from nearly 18,000 a year ago!
Inventory dropped .7% from March’s already super low levels.
5,681 homes were placed under contract in April, a 19.6% increase from a year ago and a 6.6% increase from March.
In other words 55.4% of homes on the market were under contract, NOT including short sales that are considered pending which is averaging another 15%-20% of all homes.
3,891 homes sold in April, a 13.5% increase from last April and a 12% increase from March.
This puts months of inventory at 2.64 months!!!
The average price of a single-family home rose a whopping 9.8% from a year ago and 5.2% increase from March. The average price was $298,712.
The median price of a single-family home is up 12.6% from a year ago to $249,900, which is an 7.5% increase from March.
Robert McGuire ASR – 303-669-1246