Strong Summer Sales Deplete Supply of Quality Affordable Homes

We haven’t really seen an increase in home sales in Denver but if you are trying to buy a home right now, it sure could seem like it. With the buyer credit set to expire November 30th and interest rates hovering around 5%, many buyers who waited until the last minute to start looking are finding the sales rack looking a bit picked through.
With inventory levels back at 2004 levels and still a large supply of lender owned and short sale properties clogging up the works, the few that are quality affordable homes are selling almost as fast as they come on.
January of this year saw the lowest average sale price for residential homes in the Denver area. A paltry $230,000 compared to the 2007 low of $270,000. The low price levels should have been a strong buy signal to anyone who was thinking of getting in.
Well if you are looking to time the market and you are thinking of selling your home in the under $275,000 range. September will be the month to do it.

Here’s a chart showing where we are at in the market cycle based off annual pricing movements when compared to the average. We are just passing what will be the peak sales season and entering the slow season after what could be considered stronger than expect spring and summer sales.