As most of the Nation prepares for a housing double dip, the Denver Metro Market had higher than expected sold and under contract activity. The numbers of homes sold were down from November 2009, but the average prices were up. The middle of the market started to get contracts, and that allowed a lot of move up buyers to get some bargain prices with phenomenal interest rates in the upper price ranges. The key to preparing for 2011 is to get the price right when you first come on the market!
The most recent Case-Shiller report shows in their 10 City and 20 City Composite index that we will see a double dip in housing prices nationally in 2011. Most of the gains we saw in pricing may be lost in the coming year according to their current statistics. The good news for the Denver Metro Market is that 12 of the 15 worst markets are in Florida and Arizona. This however does give us some guidance for the our 2011 market.
The Denver Metro Market should outperform the U.S. Market in 2011
- The current inventory continues to fall in a seasonal adjustment to 21,168 total residential units
- Foreclosure filings for 2010 are lower in all Counties, except Eagle County in the mountains
- Colorado’s unemployment numbers are lower than most of the United States
- A solid tax policy should encourage employers to start creating jobs again in Colorado
- Jobs creation is the formula for consumer confidence and home purchases
Solid Under Contracts In the Upper Price Ranges for November
- Post election confidence creates a new and exciting activity in most price ranges
- A solid increase in the move up market as middle price ranges receive contracts
- Offers have increased in the $750,000+ market in November
- Buyers taking advantage of low prices and very low interest rates
How to prepare for and find Success in the 2011 Market
- Realize that the number of units sold should increase in the new year, but not prices!
- Sellers should continue to put their property in show home condition!
- Sellers must price their home correctly when they first come on the market!
- Buyers should take advantage of low interest rates, but realize rates are rising!
- Buyers may realize that certain price ranges are low on inventory, so don’t wait if you like the home!
- Take action on some of the best buying opportunities in generations!
Most importantly, enjoy the Holiday Season with Family and Friends!
All real estate data taken from Metrolist Inc. on December 4, 2010 Denver, Colorado and by Re/Max Professionals
