Denver-area home sales pickup in October, inventory drops
There were 4,910 homes placed under contract in October, a 9.0 percent increase from the 4,504 homes sold in October 2008, shows a report released today. It was the best October for Realtor-sold homes in the Denver area in at least 19 years. (For more on the sales, read this blog.)
That reverses a trend of most of this year of home sales lagging the number of sales in the comparable month a year earlier. Sales did fall 6.1 percent in October from September, when 5,228 homes were placed on the market, but seasonally, sales typically fall month-to-month in the fall and winter.
“I thought it was a great month,” said Gary Bauer, an independent broker who released the report based on Metrolist data.
“It shows there is still a market out there,” Bauer said. “And with President Obama signing the bill today that will extend the $8,000 tax credit for first-time home buyers that also will provide $6,500 credit for those who have owned their homes for at least five years. That is going to help tremendously.”
One reason that October sales were stronger than a year ago, is because the impact of the recession was starting to hit home in October 2008, Bauer said.
“Last October was one we first saw the dramatic effects of the recession,” Bauer said. “We are not starting to see some growth, which is very positive. I think this is a trend we will start to see continue in the coming months.”
The average price of all homes sold was $261,771, an increase of 4.6 percent from October 2008, when the average price was $250,172. The average price, however, is down from $274,433 in September, which reflects the mix of housing prices, Bauer said.
The median price of all homes sold, at $222,00, increased by 7.7 percent from $206,000 in October 2008, but was down 1.33 percent from $225,00 in September.
Meanwhile, the inventory of unsold homes has fallen below 19,00.
There were 18,945 unsold homes on the market in October, an 18.1 percent drop from the 23,120 on the market a year earlier, a 4.5 percent drop from the 19,834 homes on the market in September.
“I do believe that is the lowest on record for an October,” Bauer said. (For more on the supply levels, read this blog. )
However, the number of placed under contract each week, at almost 6 percent of the inventory, also is apparently a record for an October.
There were 3,958 homes sold and closed in October, up 2.9 percent from the 3,846 closings in September, but down 7.6 percent from the 4,282 closings in October 2008. Closings, however, reflect homes that previously been put under contract, sometimes months before that current month. Last year, homes started taking far longer to close than ever before, a trend that has continued.
Bauer said that especially for homes priced at less than $250,000, there often in a frenzy among buyers. For a breakdown of sales activity by price points, check out this blog.
He is representing one couple planning to buy a home in the $200,000 to $240,000. They looked at seven homes that had recently gone on the market, and by yesterday afternoon, six of them were under contract to other buyers.
“And I’ve got a first-time home buyer who right need feels like he is jinxed,” Bauer said. “He looked at three properties two days ago. He went to extend an offer to one seller, and he said he had accepted another offer an hour or so before.”
That buyer is looking at homes priced from $110,000 to $120,000.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
