Home inventory continues to tighten in metro Denver

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Denver Business Journal by Dennis Huspeni, Reporter

Date: Tuesday, January 3, 2012, 1:36pm MST

The inventory level of metro Denver single-family homes and condominiums continued to fall in December, holding a trend that has grown pronounced in the last couple of months, according to a report Tuesday drawing on Metrolist Inc.    data.

The 12,531 homes on the market in December represented a 12 percent drop from November, and a 34 percent drop from December 2010, the report states. That number marked a 24 percent drop from December 2009’s 16,456 homes on the market.

“Prospective home sellers are still sitting on the fence,” said Gary Bauer, an independent, Littleton-based real estate broker and Metrolist analyst.

The continuing decline in inventory started in July and led Bauer to predict last month the level could hit 10,000 soon.

“We’ll have to look forward to 2012 and hope the available inventory increases,” he said.

The small spike in the number of units sold in December — 3,156 — represented the traditional end-of-the-year rush to close deals, Bauer said. That number was up 3 percent from November, and up 4 percent year-over-year.

The number of units placed under contract stood at 2,832 in December, down 16 percent from the previous month but up 5 percent from December 2010.

Prices largely held steady, as the average sales price stood at $253,986, up slightly from November’s $252,009 and basically flat from the $253,168 average sales price posted in December 2010.

“I do believe that 2012 is going to be better than 2011, but I don’t believe it’s going to be a dramatic rebound,” Bauer said. “There’s going to be steady progress on transactions and prices, but not big increases. Everyone’s going to keep focused on the economy and that’s going to cause several prospective home-buyers to sit on the fence.”

The report also included year-end numbers. Here are some year-end highlights and trends.

• The average days on the market for homes for sale ended at 108 for 2011, up from 2010’s level of 92 and 2009’s 98.

• The average sales price dropped slightly from 2010’s 257,000 to $255,492 last year. That average, however, was up 5.4 percent from 2009’s $242,413.

• There were 47,373 homes placed under contract in 2011, down 3.9 percent from the 49,313 placed under contract in 2010.

• There were 39,387 closings in 2011, up 1.5 percent from the 38,818 closings in 2010.

Metrolist Inc. of Greenwood Village is metro Denver’s Multiple Listing Service, a database of home sales activity for real estate professionals.

Read the entire article: http://www.bizjournals.com/denver/news/2012/01/03/home-inventory-continues-to-tighten-in.html?page=all

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About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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