Click on Map for Most Recent Metrolist Real Estate Statistics
Click on the map below to see the most recent Denver residential real estate statistics broken down by region:
Click Here for Total MLS Sales Statistics
Behind the Denver Housing Market – August, 2010
1. The average price for both condos and SFR dropped slightly in July, but is still higher than for July 2009 by a combined rate of 6.72%. WHAT THIS MEANS: The Denver market is realizing a continuing increase in the average price, which will remove the “underwater” concept many people have, and at some point, there will be useable equity for those folks that bought prior to 2004.
2. Homes place under contract in July declined by 1148 units from the previous year. WHAT THIS MEANS: The tax credit artificially moved the sales forward into the 2 month period of March and April, and unbalanced the market for the remainder of 2010 and most likely for the much of 2011. Total sales will remain under 2009-2010 levels until summer of 2011.
3. The “Absorption Rate” jumped from 24.3 weeks in June to 31.2 weeks in July. This represents an 8 month inventory vs. a six month inventory. WHAT THIS MEANS: the entire Denver market has moved back to a more favorable position for buyers.
4. The Denver market priced under $500,000 is selling well. The market over $500,000 is now at a 140 days on market, which is considerably better than to 210 days of July 2009. WHAT THIS MEANS: A combination of job losses and difficulty in obtaining mortgage money in the higher price ranges has created an oversupply in the upper price ranges. This oversupply will remain in place for some time. There will be few high priced home built in the next few years, unless custom ordered.
5. The FHA Mortgage insurance changes that were scheduled to take place in September have been delayed until later in the year.
6. At this time the following is true about FHA loans in Denver
a. The FHA Loan Limit in the Denver area is $406,250. This means you can purchase a home priced at $421,000 using the minimum amount required for a down payment ($14,750).
b. At the present mortgage interest rate of 4.5% a home priced at $300,000 will require a down payment of $10,500 resulting in a loan amount of $296,000 after MIP is included. This will result in a Payment of $1630 dollars including Principle, Interest, and Mortgage Insurance. Property taxes and Hazard Insurance must be added to arrive at the true monthly payment.
Thank you to Jim Renshaw at Land Title Guarantee for the first chart and to Larry McGee and Janet Marlow of the Berkshire Group for compiling the remainder of the Denver Housing data for August of 2010.
Michelle A. Potter
Denver and Suburban Realtor
303-489-4035
