Real Estate News – November
Our Metro Denver housing market continues to surprise and confound! For example, just when you thought the luxury market was dead and gone it starts to rebound. Two separate reports released last week suggest there is life yet in the high-end market. In the first three quarters of this year, sales volume for luxury homes totaled $608 million for single-family homes, up 1% from the first nine months of 2010. The number of homes sold was up 3% to 395. For luxury condos, sales volume in the first three quarters soared 36% to $45 million from the same period last year. But, while the inventory of million dollar homes has shrunk significantly from last year there still remains a large inventory of these homes. Stay tuned.
Of course, the majority of the market is under $300k. As a matter of fact, 71% of all home purchases in Metro Denver are $300k or less. Here’s how it breaks down: $0 – $99k = 13% of the market. $100k – 199k = 32%. $200k – $299k = 26%.
So, how are things under $300k? Very well, actually. The Denver housing market in September boasted the “youngest” inventory of listed homes in 146 metropolitan statistical areas tracked by Realtor.com. In September, the median-age of Denver’s housing inventory was just 46 days. According to a prominent local home builder, “Denver is one of the most desirable cities in the country, housing inventory is at an all time seasonal low, interest rates are at an all time low, people are moving to Denver, and the economy is showing signs of growth. These all represent the best opportunity to buy a home at any time in our history. People who are seeing the current economic circumstances as temporary – and are functioning – are getting some terrific, never to be seen again deals on homes, and will be rewarded when the economy turns around – as it always does.”
The bottom line is that, despite everything you hear in the media, our market is surprisingly strong and vibrant, with even the high-end having appeared to bottom out.