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2010 Denver Residential Real Estate
Prestige Realty Services
385 Inverness Pkwy, Suite 270 Englewood, Colorado 80112 303 708 0205
Dear Friends of Prestige Realty Services:
Prestige Realty Services (Prestige) provides this Annual Real Estate Report as a service to our clientele to give the current trends in the Denver residential real estate market and a resource to predict the future housing direction in our marketplace.
Residential Real Estate Report
Denver Metro Area Single Family Housing
p 30,777 single family homes sold in 2010 compared to 33,114 that sold in 2009 or a 7.05% decrease in the number of single family homes closed. p At Year End 2010 there were 13,941 active homes for sale compared to 2009 which had 12,263. p The highest inventory level of single family homes occurred in July at 17,983 and January 2010 had the lowest at 13,030. p The average price of a single family home in the Denver Metro Area ending 2010 is $282,080 compared to $264,803 ending 2009 year, equaling a 6.5% increase in price for the mix of properties sold. By comparison, 2006 had a single family average price in Denver of $317,112. p The average days on the market for 2010 is 90 compared to 97 one year ago. p The selling price obtained compared to Original List price is 87%. What this means is that sellers have started their pricing too high and have met a realistic price to sell. This is the largest spread in sales price vs. original list price in more than 5 Years. p The absorption rate for single family homes in the Denver Metro Area with 2010 year-end inventories is 5.43 months. As the inventory increases so does the absorption rate. For example, July had single family 17,983 units on the market which would equal to a 7.01 month supply. p The zero to $250,000 price range had the most single family home sales with 16,476 homes closed in 2010 creating an absorption rate of 4.9 months of inventory. Below 6 months of inventory typically indicates prices will increase. p Conversely the $2 million to $3 million price range had a total of 52 homes closed in 2010 creating a current absorption rate of 40.38 months.
Denver Metro Single Family Homes Closed Per Year 2005 to 2010
p The number of closed single family properties has decreased 25.6% from 2005, Denver high sales peak of 41,365. 2010 recorded 30,777 single family homes closed, which is the lowest level since 2002. p Above $1 million there were 463 single family homes close in 2010 in the entire Denver Metro area. This represents 1.5% of all the single family sales, where a more robust year would find 3-5% of the sales occurring above $1 million.
Denver Metro Single Family Average Home Price from 2005 to 2010
p The average price reflects the mix of homes sold in any given time period. The increase indicates the buyers have moved their pricing ceiling 6+% higher in 2010 over 2009. p As inventory continues to shrink in lower price ranges and interest rates remain competitive, this price should rise in 2011.
Denver Metro Area Condominium Housing
p 8041 condominium homes sold in 2010 compared to 8956 in 2009 or a 10.22% decrease in the number of condo’s closed year over year. p At Year End 2010 there were 4316 active condo homes for sale compared to 2009 which had 4193. p The highest inventory level of single family homes occurred in July at 5467 and December of 2010 had the lowest at 4316. Less building of condo’s and less inventory bodes better for Condo sales in 2011. p The average price of a condo home in the Denver Metro Area ending 2010 is $161,005 compared to $159,628 ending 2009 year, equaling a less than 1% increase in price for the mix of properties sold. By comparison, 2005 had a condo average price in Denver of $189,035. p The average days on the market for 2010 is 98 compared to 101 one year ago. p The selling price obtained compared to Original List price is 88%. Foreclosure inventory has created lower sale to list price numbers. p The absorption rate for condo homes in the Denver Metro Area with 2010 year-end inventories is 6.44 months. As the inventory increases so does the absorption rate. For example, July had 5467 condo units on the market which would equal to a 8.16 month supply. p The zero to $250,000 price range had the most condo home sales with 6457 homes closed in 2010 creating an absorption rate of 6.1 months of inventory. Below 6 months of inventory typically indicates prices will increase. p Conversely the $750, 0000 to $3 million price range had a total of 58 condos closed in 2010 creating a current absorption rate of 31.45 months. The fewer luxury condo complexes creates’ a more volatile up and down upper end condo market when it comes to absorption and pricing.
Denver Metro Condo Home Sales from 2005 to 2010
Denver Metro Condo Average Price from 2005 to 2010 f 5
p The number of Condo homes closed has decreased 31.51% from the peak of 2005. p The Downtown MLS area, DTD reports the highest condo price of $394,479 and had 253 units sell in downtown Denver area in 2010. p The Aurora South MLS area, AUS reports condo closings of 1225 units in 2010, which is the highest record sale area in the seven county Denver Metro area.
p Condo Prices have hit the bottom and will slowly rise in 2011. p Overall, the price of a condo has dropped 14.83% over 5 years. p You can buy an average price condo and have a payment of under $800 based upon today’s price and interest rates.
Overall Denver Housing Market at a Glance
SINGLE FAMILY OVERVIEW
p Active Listings on January 1, 2011 p Active List Price on January 1, 2011 p SF homes Sold for the Year 2010 p Average Days on the Market p Median Price p Average Price p Percentage of List Price Obtained p Percentage of Original List Price
INCOME PROPERTY OVERVIEW
13,941 $409,416 30,777 90 $235,000 $282,080 97% 87% 4316 $343,425 8041 98 $136,000 $161,005 96% 88%
p Active Listings on January 1, 2011 p Active List Price on January 1, 2011 p Income Properties Sold for 2010 p Average Days on the Market p Median Price p Average Price p Percentage of List Price Obtained p Percentage of Original List Price
650 $469,278 459 117 $215,000 $306,427 93% 87% 3312 $289,332 523 316 $90,000 $146,039 86% 70%
p Active Listings on January 1, 2011 p Active List Price on January 1, 2011 p Condo’s Sold for the Year 2010 p Average Days on the Market p Median Price p Average Price p Percentage of List Price Obtained p Percentage of Original List Price
p Active Listings on January 1, 2011 p Active List Price on January 1, 2011 p Land Properties Sold for 2010 p Average Days on the Market p Median Price p Average Price p Percentage of List Price Obtained p Percentage of Original List Price
2011 Predictions for Denver Real Estate
p The Price for homes in the Denver Marketplace shall remain flat for 2011 with some neighborhoods decreasing in value by 2-8% and some neighborhoods appreciating by 1-3%. p The Luxury Home Market above $1 million in price will continue to reduce inventory albeit slowly in 2011. Jan 2011 has 836 single family $1M homes for sale compared to Jan 2010 which had 1072 single family $1M+ properties for sale. A 22% reduction in inventory in one year. p Luxury Home Market above $1 Million has 21.6 months of supply today vs. January of 2010 which had 27.7 months of supply. Of course when the spring inventory grows the months’ supply will grow with it. p The Luxury Market in Denver will still create the “Have’s” and “Have Not’s” of which areas will outperform 2010. Each upper end price neighborhood will have its own dynamic of how prices will go. Watch the trends in your neighborhood closely to determine where it is going. p Interest Rates will rise slightly in 2011 to 5- 5.5% for a 30 year fixed rate mortgage. p Builders will have more housing starts in 2011 than they did in 2010. p Job gains in Denver will push the apartment vacancy rates lower in 2011. p Spring of 2011 will be a cross roads of rising inventories and buyer bonanza’s. This spring will be the true bottom of the housing market as pricing finally takes a foothold in Denver. p Foreclosure inventory will hit its peak in 2011.
Who is Prestige Realty Services?
Prestige is a locally owned and operated independent real estate company that has developed into an innovative, creative and recognizable force in Colorado real estate circles. The boutique broker centric service model of this company was designed with the consumer in mind. Prestige has been built through the eyes of producing real estate professionals to service high value clients throughout the Denver Metro Area. Experience and Skills are key components to fulfill the consumer needs in the purchase or sale of their homes. Prestige proudly boasts that the average broker experience in our company is 20+ years of real estate experience per broker. The average Broker Associate at Prestige completes 4 times more transactions per year than the Denver metropolitan real estate agent.
It’s Always About the People
Prestige Realty Services, LLC is a Colorado limited liability company delivering real estate brokerage expertise and consulting in the Denver metro area. Our leadership group offers extraordinary experience, consulting and consumer services for the real estate industry with 50+ years of combined Denver real estate experience and over 3000+ combined transactions. Our commitment is to help our brokers, plus Prestige buyers and sellers they serve in their real estate transactions.
Leeann Iacino, CRB
Jack O’Connor, CRB, CDPE Broker/Owner
Experience is Not Expensive, its Priceless
The Prestige Realty Services Broker Associates are an Experienced, Knowledgeable sales force who sell over $100 million of Denver Real Estate per year to serve your buying/selling needs.
Becky Kenny, CDPE
Michelle E. Nault
Rachel Schroeder, CDPE
Scott Cornelius, CDPE
Jeff Owens, CRS
Rita King, CSA
Dawn Tieken, CDPE
Jodi Randa, CRS
Sande Hirsch, CDPE
Susie Roy, SFR
Becky Berzins, CDPE
Joyce Banelli, CDPE
Pam Miller, MBA
Sandra Rozeboom, CDPE
Missing Broker Associate photos: Jeff Pulara and Carol Baker.
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