When is the right time for a price reduction?

A price reduction is determined by 3 factors:

1.  Neighborhood comparable sales (comps)
2.  Time on market (number of days)
3.  Showing activity

In the Denver Market:

1.  Your agent will gather this data and compile monthly for you to review.
2.  Average Days on Market for Denver Metro Area is 78.
3.  Average Number of showings before acceptable offer is 14.

The "norm" for a typical selling market over the last 5 years has been under 24%.  A 24% chance of selling your home based on what is currently available compared to number of homes that sold that month.  In 2012, the "norm" began at 24% and has been over 40% for the months of  May - August & now October.  The odds of selling your home, even in the 4th quarter, are very high.  Price is critical in capturing a buyer in today's market.  The odds are in the homeowner's favor if the house is priced right.  Continually review and analyze the data on a monthly basis.  The market will always reveal the target price.

Summary of October's Stats:

October 2012

Monthly Market Update:  data obtained from Denver Metrolist

                                                                        by Nicki Thompson

Condo Sales:

Total # Sold:  7743 which is up 1,018 units from 2011.

Residential Sales

# sold 2012:  31,464 units

# sold 2011:  26,438 units

We have reached last year’s totals for all of 2011 with 2 months remaining.

Ave. Days on Market:  dropped down to 78 days

Average Price:  $302,956 (last year, it was 279,858)

A larger percentage of the higher priced homes have been selling this year.

Active Inventory:  8108 homes are currently available

                        Inventory dropped nearly 600 homes from last month.

                                    & dropped nearly 4,000 homes from Oct. of 2011

October’s # of Sold Homes:  3246; up 100 from last month

                                                & up 764 homes from Oct. 2011

The ratio of sold vs. active homes is now at 40%.  For the past 5 years, the highest ratio was 29% until 2012.  During 2012, May-August & October all experienced ratios above 40%.  Even during the 4^th quarter, the statistics are showing very high odds of selling your home.

If you are currently listed on the market, your showing activity should continue to be high.  Statistics show that an average of 14 showings will produce an acceptable offer.   If your days on market is approaching 78 or if you have had over 14 showings on your property, a price change is strongly encouraged to take advantage of the current market conditions.