Wednesday, November 15, 2006

Denver real estate market Overall

Denver Real Estate Market Report

Denver Real Estate has been a challenge for agents this last 3 months and statistically you can see why. It appears that sales fell to a “normal” level and the 10 to 15% drop from last year has really hurt allot of brokers, especially those with very little time in the business.
As one reviews the numbers I can see why so many have been singing the blues, however our bookkeeper tells me we are ahead of last year! Relentless Marketing is truly the key.

This is something we see often as Denver’s real estate market is not stagnant, and last year at this time I saw an indication to consolidate and streamline my business (2nd chart). This year looks like next year will be another good one, as long as the public does not panic with the stories of doom and gloom from the coasts. Take a quick look at these two charts.

What you see in the above chart is a significant reduction in “SOLDS” in July, August & September of 2006 from the previous year, yet those data points would normal in a typical market. So, did we have a bad market in Denver real estate in 2006 or a really good one in 2005? Certainly, we felt some of the reluctance in buyers, but we were not moving out of the business. But I am not a statistician, I just watch 2 key market indicators to see what to expect as a Real Estate Broker.

The above chart is a little more fun, and watching data points and statistics can drive you bonkers. The tall points in 2003 were an MLS rules change where we got an “Original List Date” for all listings. It skewed the data at the beginning of the year. However, Take note of last year’s NEW LISTINGS in August, and through the end of the year. They were up significantly indicating an increase in both number of properties coming on the market and therefore days on the market would also increase. 2006 shows a much more normal year that we are about to enter with new home listings slightly lower than “average”.

Another item that may have affected my view is a recent report that Highlands Ranch real estate sales are ahead of last year by only .3%, even though days on market are up from an average of 58 to 62. This is not true in the Castle Rock section of Douglas County where sales are ahead of last year by 8.2% and days on the market shrank from 117 to 104. I can send you this report from Land Title Company under a separate cover if you wish. Just ask.

The final item that tells me the market is strong (and frankly, I do not care that there are a “record number of homes on the market” as that is just bad information in relation to population) is the office and commercial real estate market reports. Every six months TransWestern gives their Denver MIDYEAR Market Snapshot and as it relates to the economy, the jobless rate, population growth, absorption of office space and a number of other factors. This 41 page document is also available to you in Word format upon your request, but the long and the short of it is things look good in the commercial sector in Denver.

Lone Tree Colorado Highlands Ranch real estate Littleton Castle Rock Centennial Englewood Parker co and metro Denver Colorado real estate property listings mls is available at including searches for properties and homes.

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