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Do you know what actually drives the real estate market? Of course, it’s people buying and selling homes but what factors really impact the strength of the market? Well now that we are well into 2013, I wanted to take a look at the four key indicators from last year that point to a great year ahead. They are, 1. Inventory, 2. Properties Sold, 3. Days on Market and 4. Average Sales Price. Across the board, we are seeing some excellent movement and change for the better in all four of these areas. Here’s a closer look:
Inventory Levels Continue to Dwindle
We continue to see the number of available homes on the market go down. What’s interesting is that this number compares inventory levels in December 2012 to the year prior. This is traditionally a slower time of year but even then, we are seeing a good amount of activity in our marketplace. In December 2012 we reported 29% fewer homes on the market than the previous December. Going back one more year the decrease in inventory was 49%, for a two-year total reduction of 74% of available inventory.
Number of Homes Sold Increased Year Over Year
In terms of the number of homes sold, we saw a 7% increase in December over the previous year and we also saw an improvement over just one month prior. Clearly, as we continue to sell more homes and there are fewer available on the market – we will see trends change accordingly. It will continue to be a seller’s market and this will likely inflate prices somewhat.
Homes Are Selling Faster
The average number of Days On Market was 73 in December of last year, representing a 31% drop in DOM. What this means is that homes are selling much faster. This is most likely due to the fact that inventory levels are down plus buyers are eager to lock in the still historic low interest rates out there.
Prices Are On the Rise
The average price of the Denver area homes is now $289,000, up 14% from the year prior. If this trend continues we can expect to see even more increases in this area. For buyers, this makes it an ideal time to consider buying a home.
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As you can see with the trends in our local marketplace, we are definitely on an upswing. The unique situation is that we will be in a seller’s market but buyers have the benefit of historically low interest rates. If you would like to meet and discuss your real estate goals and how we can help make them become a reality, contact us today!
For a closer look at our market statistic reports, please click on the links below >>
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