In October the inventory of unsold homes in Denver plummeted by 20.1% from October 2007 inventory levels. This October there were 23,120 unsold homes available; last October there were nearly 29,000 homes for sale in the Denver metro area.
Somewhat surprisingly the number of homes placed under contract in October was only down 3% from October 2007 levels as 4,504 homes were placed under contract. For all the rotten economic news in September and October I expected that this number would be down by 20% or more. But, people are still buying homes in Denver. Why? Prices have dropped and there are some incredible deals out there.
Speaking of prices, the average price of a single family home is down 13.6% from October 2007 and the median price is down 12%. Why are prices dropping? The majority of the re
ason is the mix of homes selling. Last year less than 1% of homes in Denver sold for under $100,000. This year homes selling for under $100k make up 15% approximately of all home sales. Plus, on the top end, there are very few homes selling that are priced above $750k. Thus, both the average and median prices have dropped.
Personally, I think there is a lot of pent up demand for people and families wanting to move who have chosen to sit still right now. Second, once these bank owned properties at super low prices, begin to make up a much smaller percentage of our home sales (say under 5%), I believe home prices will rise very quickly here in Denver. Currently the average home price is $250k and I think it will quickly rise back above $300k in the next 3 years.
Baron Rothschild a very wealthy businessman in the early 1800’s in London said, “you buy when there’s blood in the streets.” And the banks are bleeding. Go and take advantage of them. It’s your chance.
Somewhat surprisingly the number of homes placed under contract in October was only down 3% from October 2007 levels as 4,504 homes were placed under contract. For all the rotten economic news in September and October I expected that this number would be down by 20% or more. But, people are still buying homes in Denver. Why? Prices have dropped and there are some incredible deals out there.
Speaking of prices, the average price of a single family home is down 13.6% from October 2007 and the median price is down 12%. Why are prices dropping? The majority of the re
ason is the mix of homes selling. Last year less than 1% of homes in Denver sold for under $100,000. This year homes selling for under $100k make up 15% approximately of all home sales. Plus, on the top end, there are very few homes selling that are priced above $750k. Thus, both the average and median prices have dropped.Personally, I think there is a lot of pent up demand for people and families wanting to move who have chosen to sit still right now. Second, once these bank owned properties at super low prices, begin to make up a much smaller percentage of our home sales (say under 5%), I believe home prices will rise very quickly here in Denver. Currently the average home price is $250k and I think it will quickly rise back above $300k in the next 3 years.
Baron Rothschild a very wealthy businessman in the early 1800’s in London said, “you buy when there’s blood in the streets.” And the banks are bleeding. Go and take advantage of them. It’s your chance.
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