Although it was a bumpy ride, the Denver real estate market showed promise in April 2011.
Although the number of Denver homes put under contract in April 2011 was down from the year (due to the 2010 homeowner tax credit expiring at the end of April 2010), the housing market showed promise overall.
The number of homes under contract was up 33 percent from March to April, which was second largest gain for a March to April comparison. Even better, the number of houses on the Denver market is at its lowest point in nine years (since April 2002). Analysts usually expect about a ten percent increase in the number of homes listed in April in time for the Spring selling months, but 2011 only saw a 1.2 percent increase from March to April. The expected increase in inventory just is not materializing this year.
Due to the lower than expected inventory, home prices are rising from the bottom. Chris Mygatt, President of Coldwell Banker Residential Brokerage in Denver, says that the tight inventory usually causes prices to rise as such.
Mygatt also indicates the reason that there are fewer sellers this Spring may be due to the number of foreclosures and short sales on the market. Many homeowners are waiting to list their homes in hopes that the market will absorb these properties. After most of these properties are bought up, prices for traditional listings should fare much better than in a market flooded with real-estate owned properties.
It sure will be interesting to see what the numbers look like as we head into June. For more information about the Denver real estate market, continue to read my blog. Have a specific real estate question that you need answered? Ask by leaving a comment below!
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