2007 Metro Denver Real Estate Sales Statistics

Year to date 2007 shows 39 percent of homes in the Denver Metro area, sold in 40 days or less.

2007 Metro Denver Colorado Real Estate Sales Statistics look great compared to the rest of the country...the fact that 39% of Metro Denver sellers are under contract in under 40 days, is remarkable.  You can still get the best price for your home and sell it in less than a month and a half.

Some sellers list their home thinking they will start at a high price (and some brokers let them do this) and wait to see if they can get that much for their home. That may not be the best way to get the most money for your home. The statistics show that sellers make more money when they price their home right from the very first day it’s one the market.

I have always said, "price it right and turn down offers"!

Nearly 39 percent of homes, sold between January 1, 2007 and June 30, 2007 in the Denver Metro area, sold in 40 days or less. On average those homes sold for 2.8 percent less than the original asking price. The sellers of those homes made much more money than the sellers whose homes sold between 41 and 81 days, which sold for 6.6 percent less than the original asking price.

Below is a chart that shows the average difference in sold price and original list price according to days on market. Compare a home listed for $350,000, that sells in 40 days for 2.8 percent less, it would sell for $340,200. If the same house sells in 80 days for 6.6 percent less, it would sell for$326,900. Or if the same house takes over 245 days to sell for 12 percent less it would sell for $308,000.  If you were to do the math, the cost for each day on the market is about $168.00.  This is what it costs to OVER PRICE YOUR HOME.

Actual Dollar difference and percentage for homes in Metro Denver listed for $350,000
                                 

                                      % diff List Price

Days On Market              to sold price                    Dollar Amount                    Total % of Homes Sold

40 days or less -               2.80%                               $9,800.00                                38.6
   41-81 -                             6.60%                               $23,100.00                              19.8
   82-122 -                           9.2%                                $32,200.00                               12.8
   123-163 -                        10.7%                               $37,450.00                               9.3
   164-204 -                        11.2%                               $39,200.00                               6.7
   205-245 -                        10.3%                               $36,050.00                               4.3
   246-286 -                        12.0%                               $42,000.00                               8.5

Source: Based on Information from Metrolist, Inc. for the period 1-1-2007 through 6-30-07. “NOTE: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. Does not guarantee nor is in any way responsible for its accuracy. Data maintained by Metrolist, Inc.may not reflect all real estate activity in the market."

Comments

[Guy Johnson]

Great post, Mark. I liked it so much I performed the same analysis on the Reno Market. Check it out at: http://dianecohn.blogs.com/reno/2007/08/how-much-does-i.html

It was great meeting you at the Inman Connect conference.

[homes]

Great balls of fire. Thanks for posting this.

[Frank Borges LL0SA- Virginia Broker Blog.FranklyRealty.com]

Hey there.
I'm doing some research on DOM and price correlation. I also agree that there is a direct link. Also I appreciate that you use ORIGINAL price. Were you able to use DOMP or DOMM (the one that keeps counting regardless of the agent).

One comment I found might be flawed:
"The sellers of those homes made much more money than the sellers whose homes sold between 41 and 81 days, which sold for 6.6 percent less than the original asking price."

Would it be more true to say that they made closer to asking price? If these "overpricers" overpriced by 10%, wouldn't they be BETTER off with a 6.6% drop versus their counterparts that
a) started 10% lower and
b) dropped a subsequent 2.8%

I hear what you are saying, I'm just playing devil's advocated (the grumpy customer). It would be nice if prices could then be pegged to something like tax assessments. Yes oftentimes they aren't an indicator of price, but if you look at 100, I bet statistically it might become accurate.

Also do you net out your closed prices to include seller subsidy?

I did a study
blog.franklyrealty.com/2006/12/mris-data-average-soldlist-ratio-986-or.html

And found while the MLS said people were getting 98% of list price, I found that they were really getting 92% of list versus 1) Original list from original agent 2) including the average 2% seller subsidies.

Great post.

I soon will have an analysis of DOM vs price on my Virginia Blog, I'll keep you posted.