Gary Bauer has released his monthly analysis for Metrolist of Denver Metro area home sales for June – one key finding is that average days on market is 104 for June 2010 vs. 82 days in June 2010. Over 3 months is a long time to have a home listed and to deal with showings – big headache. Proper pricing, prime showing condition and proper broker selection are the keys to avoiding this pain.
Another key: “Average selling price of the properties that closed in June was $266,493, up from $257,177 in May, but down 3 percent from $273,511 in June 2010.”
My take is that the pricing indications are bouncing around a bit compared to last year – more evidence I think, that prices may have bottomed (but and will continue to bouncing along the bottom until Employment recovers). Employment concerns still are slowing the market overall – perhaps concerns about the debt ceiling are influencing that as well – international debt crises – tighter lending restrictions – actually, there are a lot of things that are weighing on the market…
From a lending perspective – I saw recently that in the commercial arena, looser underwriting has started to appear as demand for CDO’s is heating up – not sure if this is a good thing or a bad thing….what is the saying – “those who forget the past…..”
Residentialy speaking, all real estate is local – your neighborhood may have demonstrated a different trend – good or bad. I know that in Cherry Point, a number of the recent sales have been estate sales where the seller may have been motivated to unload or where the broker may have given some bad advise or just not made a valiant effort to market the home because it was an estate deal – these kinds of things kill averages and other statistical measures and hide the true demand characteristics and baseline value characteristics of a neighborhood. Unfortunately, for future neighborhood sales, many appraisers will not have the time to dig into these past sales to see the facts behind them, making it tougher to get good deals done.
What kills me is that the low sales fly in the face of neighborhood market demand too – I know there is demand for the neighborhood because the has been a recent non-MLS transaction (at a good price) and I have been approached by several brokers asking about available properties – which leads me to blame the listing brokers on those weak sales.
Do your homework when looking for a broker – a $10k + commission is a lot to pay for a lame effort!!!