Get Ready to Buy or Sell

The activity in Parker is starting to pick up with 153 single family home sales in the last month.  This brings the number of year to date transactions to 340 in the first three and a half months of the year.  While transaction volume is starting to increase, we are seeing little change in the amount of inventory. Currently there are 390 single family homes for sale in Parker. This number is almost identical to the 392 we saw at the same point last month meaning the market is absorbing the inventory at an increased pace. Currently there are 330 properties that are either under contract or pending sale compared to 282 in the prior month.  While we continue to expect more inventory to surface during the spring selling season, as of now demand is keeping pace with any new supply that we see. Let’s take a look at how our current inventory is broken down by price point.

PARKER SINGLE FAMILY HOMES BY PRICE POINT

*Information obtained is from MLS Inc. as of 4/16/12. Information is deemed reliable but not guaranteed for accuracy. 

 The chart above depicts the current number of single family homes available for sale and under contract for the various price points.  We can see in the above depiction that there is still very little inventory in the lower price points.  In the less than 300 thousand market demand continues to outpace supply. If you are looking to buy in this price point, it is an extremely fast moving market.  Many homes are receiving multiple offers in a period of days. One are we are seeing an increase in demand is the 300-350 thousand market.  This month there are currently 57 active properties and almost double the amount under contact this month. 62 properties in this segment are now under contract or pending sale compared to 32 the month prior.  With interest rates remaining extremely low and little inventory in available at lower price points, we are beginning to see more activity in this segment of the market.  The over 450 thousand segment remains the weakest segment of our local market with active listings outpacing U/C or pending sales by a margin of almost 6 to 1.  Better deals can still be found in this segment of the market and supply and demand dictate lower prices.

When calculating how long it will take to sell a home we look at inventory levels across the various price points to determine how supply and demand is affecting the current market. Based off of 2011 sales we can calculate the number of homes that are selling on average per month across the various price points.  We also take into account the current number of properties currently under contract to support our numbers.

*Information obtained is from MLS Inc. as of 4/16/12. Information is deemed reliable but not guaranteed for accuracy.

The table above illustrates perfectly what is occurring in our local market.  There continues to be extreme demand for affordable housing.  5 to 6 months of inventory represents a “normal” market in terms of supply and demand.  It is not until we get into the 350-400 thousand market that supply is “normal”.   The upper end market remains the weakest segment of our local housing market as inventory remains

                As inventory remains low in Parker and the entire Denver Metro area, now is a great time to sell across most price points.  Demand is increasing and the new supply of homes coming to market is being met with strong seasonal demand. This is keeping inventory stable month over month. Less inventory is available in the lower price points, therefore we are seeing some trickle up demand to slightly higher priced homes.  Should you have any questions regarding  your current situation, feel free to give us a call as we would be happy to advise you.

Jeff, George, and Rhonda

303-949-5112