Colorado Real Estate

Are we bottoming out in the Colorado Real Estate Marketplace? All indications are…..

The overall market is showing some strong signs that we are at the bottom and we will start to see a slow gradual return to a normal market. The current trends I’m seeing are an increase in closed transactions, a reduction in active listings driven by lower average sold price.  Residential homes sales for October of 2008 posted a 12.2% increase with 3,386 residential transactions. This brings the year to date total up to 33,048 sold’s only 1.9% less than this time last year.  Condos also posted an increase in closed transactions up 7.8% to 896 units for the year. The second trend is a reduction in active listings.  Residential listings dropped to 17,842 homes an 18.7% decrease compared to October of 2007.  This is a significant drop in inventory and could resulting in higher sale prices in the near future.  The number of active condos also had a significant drop to 5,278 or 24.4% fewer condos on the market.  The third trend lower average sale price could be the reason behind the other two trends increased closings and reduction of inventory. The average sale price for the entire metrolist dropped to $250,172 a reduction of 13.7% over this time last year.  Buyers are looking for great deals and finding them. Average days on market reduced to 93 and absorption rate is now only 5.5 months.

DCW posted a modest reduction of closed residential transaction of 4.3%, 6 fewer closings than October 2008.  Year to date DC is down 16.7% or 277 fewer homes have closed in this area. Average days on market has reduced to 131 a 10.9% drop compared to this time last year. Absorption rate increased by 7.8% indicating a buyers market. It would take 11.5 months to completely sell out of inventory without having any new homes come on the market.  The average sale price for October was $380,545 a 9.1% reduction over this time last year.

DEP also posted a modest decrease in residential sold’s of 3.8%. Year to date 308 fewer homes have sold a decrease of 16.2%. Average days on market dipped to 101 days a decrease of 11.4%.  Inventory reduced by 8.1% with 1,198 homes for sale in Douglas Elbert Parker area.  The absorption rate is currently at 8.2 months a reduction of 6.7% over this time last year.  Average sold price was decreased to $345,214 a reduction of 3.9%. Condo sale where stronger this month with 27 units sold an increase of 28.6% at an average sold price of $158,188 an increase in sold price by 7.6%.