By Dr Denver H. Bubble
The Denver Metro Association of Realtor stats are out for November and they have some mixed signals, but signs continue to point to a gradual bursting of the real estate bubble in the metro area. Housing inventory is down again almost 12% to 7,530. However, if we look at the year over year inventory statistics, inventory is up 47% which is a good sign for buyers as inventory levels in the second half of year are up. Sold homes were crushed down almost 17% month over month and almost 23% year over year. Sellers in the future will have to continue to drop their prices if they want to sell their homes.
Prices are dropping after rising last month, the average selling price was down 1.6% month over month and 6.5% year over year to $462,344. The median selling price was down 1.25% month over month and up 5% year over year to $395,000. Average prices were down in the residential market 3.33% month over month and up in the condo market almost 5%.
Homes are sitting for long with the average home sitting on the market for 31 days up 6.9% month over month and flat year over year.
We are still not in a buyer's market yet, but we are getting closer. Jill Schaffer, Chair of the DMAR Market Trends Committee, said, "everyone agreed that the downward shift int he market that started mid-year continued into November." Look for continued price pressure and drops in homes sold in December with the Federal Reserve looking to increase interest rate an additional 25 basis point, which should add to pressure on house prices.