Denver Metro Market Update - July 2008

The Denver Colorado real estate market remains a true buyers market. July’s listing inventory of 25,673 homes dropped from 26,104 listings the prior month, according to numbers recently released by Metrolist, Inc.

The drop in available housing is supported by the 5.74% increase in homes sales during the month of July as compared to 2.87% a year ago. Residential property benefited the greatest with a sales increase of 7.98% in July over June and 6.54% as compared to the same month last year. Denver area condominiums and townhouses took it on the chin though with a dip of -2.91% and -10.36% respectively.

The average days on market continually dropped during the course of the year with an year to date average of 104 days. Last month we observed a slight increase to 98 as compared to 97 in June. Next months activity will determine if we’re to continue the overall declining trend of days on market or turn towards the upside.

Unfortunately, while sales volume rose, the average sales price took a turn for the worse with an overall dip of -9.36% as compared to the same month last year. Residential listings lost -1.06% in sales price last month and decreased a whopping -10.18% as compared to the same month last year. However, condominiums really took a blow with a reduction of average sales price of -10.98% in July compared to -12.14% the same time last year.

A portion of the reduction of sales prices might be explained by the purchase of foreclosure properties by first-time home buyers and investors. Buyers have much to choose from and have been rather selective. However, while inventory abounds, there are many buyers in the market place so when a property comes around that is priced right and shows well the home can sells quickly with multiple offers.

Date: Friday, July, 25th 2008 @ 06:39:10 PM
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