Phantom Home Sellers Skew Market Figures

During the last quarter of 2008, 19,600 homes were listed on the Denver MLS, a 20% drop from December, 2007. Meanwhile, the 47,837 home sales for 2008 home sales represented a 4% drop in sales from December, 2007. These figures indicate that there is a five month inventory of homes available for buyers - considered to represent equilibrium between buyers and sellers.

On the surface, this appears to be good news. In many areas of the country, there has been a 10 month supply of homes. Denver home prices are more stable than in many other areas and foreclosure rates are falling. Denver homebuyers still have a good selection of homes to choose from.

The fear voiced by some local real estate analysts is that many potential sellers are withholding their homes from the market until the situation improves. According to John Covert of Metrostudy, this has led to the development of a "phantom" resale market of sellers who have deliberately held back from listing their homes or who have taken them off the market for a time. Sellers feel that will get a better price if they wait. At some point when a large percentage of these phantom sellers decide to list their homes, the market will once again be out of equilibrium.

The number of available homes on the market is expected to be supplemented by additional foreclosures, as well as by the release of a large number of bank-owned (REO) homes into the marketplace. Sellers who are waiting for a better time to sell may face even more competition and more market pressure to sell at a lower price. Buyers will continue to enjoy an almost overwhelming selection of fine properties.

Though sales are down among market-value homes for sale, a good real estate agent can assist a potential seller to correctly position his home to be one of the ones that "move" and help negotiate a fair price. It is true that homes may not yield the appreciation -fueled prices of the past, but a realtor can provide comparative market analyses that show what neighborhood properties are selling for and factor in special features that may command a higher price. The realtor can suggest how the home might be made more saleable and suggest pricing strategies. When buyers, often aided by agents themselves, are overly aggressive in their attempts to cut a deal, a good realtor can offer a dose of realty to both sides.

Do you want to sell your home, but fear that declining home prices will pressure you into selling your home for less than it's worth? At the Bandy Home Team, we can help you find out what your Denver home is worth and assist you in pricing your home right. Why wait till the market is flooded with homes again? Contact our Denver home sales team today.

Marianne Bandy

Your source for Castle Rock homes