Denver Real Estate Market Update

With only 86 days until 2011 here is how the 2010 central Denver real estate market is faring compared to the first three quarters of 2009.  Median home prices are up 3.7% from $335,000 to $347,500.  Average days on market have dropped from 121 days to 94 days.  Finally, inventory is moving toward a more balanced market (balanced = six months of inventory) at all price points.

Denver Housing Market Inventory

As the last few months of the year wind down we are seeing a dramatic slowdown in market activity.  Not surprisingly, seasonality plays a large part in this, but two additional factors are at play this year.

First, the upcoming election has potential home buyers uncertain, and second, the tax incentives that expired in April accelerated many home purchases to the first half of the year.  In fact, the number of homes sold in August of this year was down 21% compared to August 2009.

With interest rates hovering around 3.875%, sellers concerned that their homes have not sold, and the onset of winter and continued negative political campaigning, now is a great time to purchase a home.  Potential sellers would be wise to hold off listing their homes until after the election and as we move toward the seasonal upswing in late February.

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