Wednesday, December 28, 2005

Denver Metro Existing Home Sales

by Osman Parvez


There's an article from the Rocky Mountain News regarding Denver's existing home sales in 2004.
  • Existing Home Sales: $14.9BN, 4% greater than '04.
  • Average Price: $281,188 up 5.8%
  • ~1,000 fewer homes were sold in '05 than in '04, a decrease of about 1.9%.
  • Current Inventory: ~13% greater than the same time in '04.
  • DOM: Homes sold an average of 90 days on market. An increase of 5.9% from '04
Appreciation rates this year were in the 4 to 6% range (the norm since 2002). In contrast, California and Florida posted bubble-like appreciation rates of more than 20% this year. It's possible the Denver metro market next year could show greater appreciation because the Denver metro area has moved counter-cyclically to California, and California's real estate market is showing signs of cooling down.
The analysis of what's happening in the price tranches seems spot-on. The low end of the price spectrum has slowed because buyers looking at those properties were also the ones most affected by increases in home heating costs and gasoline prices. The latest news is that Consumer Confidence has strongly rebounded, so perhaps we'll start to see more activity at lower price points moving into the new year. That would be great for our listing at 205 Agate Way, already priced well below neighborhood comps and positioned for a quick sale.


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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

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