Home Seller

The other day, I was taking a glance at the recent MLS statistics and it jumped out at me the startling difference in stats compared to one year ago.

Let’s take a minute and talk about some key indicators in the real estate market and what the data from Metrolist tells us about the health of local real estate.

First, inventory has been stable and it’s been remarkably low. For at least the last 18 months, we’ve been hearing rumor after rumor from “industry insiders” that banks were getting ready to flood the market with a massive amount of foreclosures. I hear it and I hear it, but it doesn’t happen. We’re all grateful it hasn’t happened and as a result, if you take a look at inventory as of the date of this column, there are only 21,000 single family homes and condominiums on the active market. That’s low for this time of year and it’s only up 1% from this time last year. Conclusion: inventory is low, has remained low, and probably will stay low for a while which means less choices for the buyer and better prices for sellers.

Sold data is what we all want to know about and it gives us some of the best news of the all the numbers. Sold homes and condos are up 16% from last month and 23% from this time last year. Better yet, average days on market are down 7% from last month and 22% from last year. To top that, the average sold price rose 7% from this time last year.

There is good news with homes that are under contracts as well. Homes that are under contracts are up 12% from last month and 27% percent from last year. That 27% represents the most significant change in all of the market data.

Combine this information with the data that was released about positive job growth in March, April, and May and you start to have a good feeling about the recovery. There is pent up demand by home buyers and now we are starting to see those results. Remember, jobs and real estate are always the last indictors to come around for a recovering economy and with positive news in both sectors, maybe we are out of the woods.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

I venture to guess that if you own a business or are in a business that sells a product or service, you have felt the tidal wave of indecision by consumers as of late. I have owned multiple businesses over the years and never in my adult life have I seen so much indecision. It’s almost as if people are paralyzed by the thought of making a decision. I am not just talking about buying a home, but also about buying a car, services like pest control, or business owners trying to decide whether or not to launch a new product. I understand that there are a lot of good reasons to be cautious at this time, but I am wondering if maybe we have gone too far in the opposite direction. The reason why this topic is so important to real estate is because sellers have never been more frustrated in wanting to find out why buyers are looking, but not making a decision to buy. Let’s look at the few reasons why people are hesitant to make a decision:

1) The obvious answer is the economy. People are still not convinced that we are out of the woods or they are worried that the economy may have a relapse.

2) Jobs are a big inhibiting force from people making decisions. No one blames anyone for failing to make a major or even a minor purchase because of job uncertainty. It just underscores how important it is to get people working again.

3) Afraid of not getting the best deal. This fear has hit an all-time high in 2010. People are absolutely petrified that they have overpaid for an item, goods, or service. They shop, check, and analyze the internet backwards and forwards. They are so afraid they’ll miss something better at a cheaper price that it paralyzes them from making a decision and moving forward. And yes, this includes homes.

4) I bet that not too many people have thought about the fact that the internet is actually stopping people from making a decision. The reason is simple. The internet has actually given us too much choice. Before the internet, we did not have access let alone instant access to merchants all over the US and the world. We bought goods and services from people in our own backyard and we were limited on our choices. The fact is, today we have way too many choices; it confuses people and actually contributes to a lack of a decision.

In conclusion, I am sure that reasons number one and number two will resolve the majority of indecision going on in the marketplace. As for reasons number three and number four, I am afraid that they are here to stay. As a result, we’ll continue to be a society forever held hostage to the concept of “the best deal” and we may still not be able to make a decision.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost