RE/MAX Alliance agent Chris Davis answers questions regarding the current real estate market and what’s happening specifically in the South Denver area. Chris has been in business in the South Denver area since 1996 and has been a resident of Denver for 26 years.
What are today’s consumers most concerned with when it comes to buying and selling real estate?
With the real estate market in a current suppressed state, buyers are putting more focus in chasing after “the deal”. They really need to see the value in what they are buying.
What are some positive signs in the South Denver real estate market? We are starting to see stabilization in certain market areas. In particular, established neighborhoods in the South Denver area are starting to stabilize in price and the amount of inventory when compared to 2010.
What are the current market trends in South Denver? Homes that are priced around $200k are selling quickly although the inventory is increasing. The higher end of the market continues to have a tough time stabilizing. The sales turn rates remain very low while the amount of inventory is increasing.
Where are South Denver homebuyers coming from? The lion’s share of the buyers that I am currently with, are in three different categories. The first is short sale and foreclosure buyers. These buyers are usually after a reduced price, regardless if the property has its share of problems. Secondly, are those buyers taking advantage of the financial opportunity to move up while prices are suppressed. Lastly are the downsizing buyers. These buyers tend to downsize due to various reasons; financial related, divorce, a child leaving the home, etc.
Why is now a great time to buy a home? Buyers are beginning to realize a major opportunity. If they are in the right financial position to upgrade their family home or buy a second home, there has to be a fundamental transformation in the way they view this purchase. In an up market they sell high and buy high. In this market, buyers that are also sellers can sell a bit low and buy even lower. With the vast amount of inventory consumed by foreclosures and short sales, there are very few “move in ready” homes available. This will help sellers that have kept their home in good shape get a better value on their current home. Buyers can find great deals right now, and if they are willing to put in a little work, buyers will usually end up with equity on day one and have a dream home they never thought they could afford.
What do you think is a realistic outcome for 2011? First, homes under $200k will maintain velocity and increase in overall inventory. Second, homes over $1M will have a tougher time. Sales turn rates will remain very low and inventory will continue to increase. Municipalities such as Cherry Hills Village that are heavily reliant on property taxes for revenues will be facing some very tough budget decisions in 2011 and a limited ability to maintain services at their current level.
For questions regarding the South Denver market, please contact Chris Davis at (303) 667-7841.