Denver Market Conditions May 2007

The number of Denver homes and condos sold in April increased by 2.92% over last month and 2.3% over April 2006, an active buying season. Average sold prices for single family homes increased 6.76% over last month and 1.12% over last year this time. The exception in activity and value was in the condo/townhouse market which saw a drop of 3.34% over last month and 7.02% from 2006 in the number of condos sold, and a drop in value (average price) over last month of .49% and over last year of 2.97%. Experts attribute the drop to overbuilding in the condo market, and predict it will continue throughout 2007.

Homes were selling faster than they had during March 2007, largely due to warmer weather and the beginning of the traditional spring selling season. Average days on market for single family homes dropped from 117 in March to 106 in April. For condos the drop was from 127 to 117 days on market.

In March desirable homes in good locations were still languishing on the market, while in April these same homes were being snapped up quickly. One of my clients saw half a dozen homes go under contract before she was able to see them.

If you're thinking of buying, now would be a good time. It could well be that the Denver housing market has hit bottom and values will continue to rise. Interest rates are still low, 6.125% (as of this writing) for an A borrower on a 30 year fixed loan.