Mountain Suburbs Economic Snapshot - October '12

As is customary for this time of the year, the Mountain Suburbs real estate market has begun to settle-in for the fall and winter. Active listings continue to decline with the September/2012 inventory of single family homes being down 7.18% (453 vs. 488) when compared to August/2012 for the Mountain Suburbs. If that trend continues, active single family home listings for the Mountain Suburbs at the close of 2012 will be approximately 362 (2011 ended with 515 active single family home listings). When comparing September/2012 to September/2011 active single family listings are down 27% (453 vs. 623).

Through September/2012 single family home sales for the Mountain Suburbs are UP 33.25% when compared to through September/2011 (597 vs. 448); attached unit sales are UP 42.85% (20 vs. 14); the market is UP 33.54%.
Below is a brief overview of the activity level for single family homes in the Mountain Suburbs real estate market through September/2012, courtesy of MetroList, the Metro Denver MLS.

The Absorption Rate is essentially the length of time it would take for the market to absorb itself, assuming no new inventory enters the market and the rate of sales activity remains the same. Absorption Rates improve as the year progresses. Inventory levels rise and sales activity increases.

The Absorption Rate at the end of September/2011for single family homes in the Mountain Suburbs was 381 days. Which means? Single family homes are selling much quicker these days than they did last year.

As the Presidential election heats-up and the holidays surface look for the Mountain Suburbs housing market to take a back seat. There will continue to be buyers contracting and closing on homes, and sellers wanting to sell, but the bulk of the sales activity is now in the rear view mirror.

Mortgage interest rates remain at historic lows and banks/mortgage companies are willing to lend to qualified buyers. Home values have stabilized in most price ranges across the Front Range area, with entry level homes showing the most improvement. This being driven, to some degree, by production builders once again being a viable part of the overall housing market. Bank foreclosures and short sales are getting less media coverage these days, but they are still an important aspect of the market.