Exerpts from Your Castle Real Estate’s 2nd Quarter Trends Update…
– The average home price in July 2009 was a little higher than July 2008. That’s the first time that’s occurred in years.
– As of today, August 2009 is also ahead of last year.
– Importantly, the first four months of 2009 (January – April) were down 11% from 2008. However, in the second four months (May – August), we’re only down 1%.
– Aurora North and Denver Southwest (the hardest hit areas) continue their trend of price recovery.
– The smallest 10% of sold homes– those under 910 square feet…
– In January – April, these homes’ average price lost -5% between 2008 and 2009.
– In the next four months, May – August, these small homes appreciated 14%.
– It appears all of the multiple offers are driving up prices!
– The next 15% of small homes, those from 910 – 1150 square feet….
– We see similar improvements in price appreciation here, too.
– The largest 10% of all homes, those with 2,875 or more square feet…
– The rate of price decline eased a little bit, but not much.
– This is consistent with what we have been talking about for months. The lower end of the market is healthy and continues to recover. The high end continues to struggle.
If you’re looking to buy in the lower 50% of the market (homes <$210,000), prices are going up FAST. Waiting to “see what happens” is going to mean you’re going to PAY MORE for your house.
If you’re selling in the upper end of the market (homes >$500,000), prices are going down and I think this will continue for a while. If you have to sell and are trying to figure out when… NOW would be a good time to do so. Waiting for the 2010 spring selling market is a bad idea. NOTE: The middle of the market (~$210,000 to ~$500,000) is “balanced”, with about 5 months of inventory.