Market Data

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 am pretty candid with sellers when I go in their homes to meet with them about listing their property for sale. I tell them, “I cannot sell your home, only you can.” I know what you are saying, “But Dan, you are a Realtor, that’s what you do…you sell homes.” No, I market homes, create showings, and give you an opportunity to sell your home.

You have the final say if you are going to sell your home and at what price. If it were up to me to sell your home, I would go into the local MLS and change the price of all the homes I am listing. Moreover, I would change the price so the home sells in a week to 30 days. Now you’re saying, “But Dan, you would give away my home for nothing.” No, no, I wouldn’t. But I would price it according to the market data so it fetches an offer in a week to 30 days.

There are sellers who are sitting on homes that are overpriced anywhere from $30,000 to $900,000, and even more. Their homes will sit on the market for 3 months, 6 months, a year, two years, and over that time, the sellers begin competing against themselves. You know what I mean: they priced their home at $650K, three months later, there’s no offer and they lower it $615K, then six months later it’s $599K, a year later it’s $549K, and so on. The seller has had no offers and they are competing against themselves by reducing the price and chasing down the market. Does that sound like a strong selling strategy? I think not!

Why not just price it below the market curve and sell it right out of gate? How does carrying the home for 3 months, 6 months, a year, or two years including the time, aggravation, and expense make sense to anyone? The days of some fairy tale buyers coming off the street and overpaying for your home are long gone. Buyers are too smart these days, too savvy, and have done way too much home work.

Remember, for each day that you don’t sell your home, you buy it. I can’t sell it for you because my name is not on the deed. So price it to sell in the next week to 30 days and move on with your life.

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

Keep up to date with the latest market data information each week on this blog.

http://www.coloradodreamhouse.com Home Values peaked in last 2007 in Greenwood Village, Colorado and since then have been dropping. Despite the numbers this is still a very desirable neighborhood to live in and one that people want. Market data shows that values are down about 10% from this time last year. To see how Greenwood Village is comparing to other neighboring areas click the blue link below the graph.

As always if you have specific questions and would like to contact me directly feel free at dpolimino@fullerproperties.com and 303-522-1161.