Summer time is here again! Temperatures have been soaring into the 70′s and 80′s the last few days which is a huge contrast to the multiple snow storms we’ve had in the last month.

The real estate market continues to be as exciting as ever! There is a buzz surrounding the local real estate market in the lower price ranges with multiple buyers waiting to see what properties will come available next.

The Estes Park market has more properties under contract right now than we have had since I started keeping track in 2008. This is a huge indicator in the strength of the market right now. While purchases may be taking longer now than in the past, there is no denying the shear volume of transactions on the verge of completing.

Median prices are dipping because of the absence of high end sales. This stat is counter-intuitive to a market that is supposedly getting stronger. The huge discrepancy between properties under $500,000 and properties over $500,000 is causing this shift. To put it simply, we have a ton of properties selling in the lower price ranges and almost nothing closing in the upper price ranges. Naturally, the middle of the whole market (which is reflected by median price) will shrink until those high dollar homes start selling again.

Days on the market for sold properties is shrinking. A few months back, I mentioned to watch for this indicator before the market would improve. I would expect time on the market to continue to shrink as the market continues to get better. As more buyers jump on great properties when they come available, this will continue to shrink.

We currently have a shortage of inventory with buyers becoming increasingly frustrated not finding what they are looking for. Active inventory for single family homes is 73% of what it was last year at this time. For properties under $500,000, there are 60% of last year’s total on the market at this time (66 available this year and 109 available at this time last year). Simply put, buyers are not liking what they are finding on the market. Some of these buyers have the ability to move up in price range which helps our market out further. As long as inventory continues to decrease, our market will continue to improve.

Advice for Buyers:

Have your ducks in a row when you are ready to buy property. Get a prequalification letter from a local mortgage broker. Get a feel for the local real estate market in your price range before you are ready to buy by searching online. Be comfortable with the real estate paperwork involved in making an offer in Colorado (I’d be happy to provide a copy of the documentation ahead of time). Be ready to write a check for earnest money which is typically about 1% of the purchase price. If you have all of these steps ready to roll, your chances increase greatly of getting the right property when it comes available.

Advice for Sellers:

If your home is worth less than $500,000, spend the time and money to make your home as perfect as possible. Price your home aggressively and I’ll guarantee you get some interest in today’s market place.

If your home’s value is worth more than $500,000, you are still stuck in a declining market. You can either price your home aggressively to sell before the value dips any further or stay off the market and wait for prices to rebound. By my best guess, that could take another 2-3 years. The choice is up to you. Whatever you do, don’t “test” the market with a higher than reasonable asking price as that will be a waste of your time.

Estes Park REal Estate Market Statistics

Single Family Homes

143 – Active on the market (4 more than last month and 51 less than this time last year)
9 – Sold in April(8 less than last month and 2 more than April 2012)
44 – Currently Pending (11 more than last month and 13 more than this time last year)
$330,000 – Median Price of trailing 12 months of sales
$675,000 – Most expensive home sold in April
$195,000 – Least expensive home sold in April
10 Months Supply of Inventory (Also called Absorption Rate)

Condominiums and Townhouses

91 – Active on the market (4 less than a month ago and 29 less than this time last year)
8 – Sold in April (2 more than last month and the same as April 2012)
28 – Currently Pending (3 more than last month and 16 more than this time last year)
$245,250 – Median Price of trailing 12 months of sales
$320,000 – Most expensive condo sold in April
$114,500 – Least expensive condo sold in April
10.8 Months Supply of Inventory (Also called Absorption Rate)

Vacant Land

122 – Active on the market (2 more than a month ago and 3 more than this time last year)
5 – Sold in April (1 more than last month and 5 more than April 2012)
5 – Currently Pending (the same as last month and 3 more than this time last year)
$155,000 – Median Price of trailing 12 months of sales
$155,000 – Most expensive land sold in April
$77,000 – Least expensive land sold in April

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Making real estate decisions based on how the national real estate statistics are performing is like listening to a nation-wide weather forecast to decide whether you should put on a jacket on your way to work in the morning. Real estate is local and always has been. If you are going to be making real estate decisions in Estes Park, you need to follow local real estate statistics to see what course of action will keep the most amount of money in your pockets.

Right now, we have both great news and not so great news to report in our market. For instance, our median price will continue to fall in near future as a result of the majority of sales coming from the low end of the real estate market. However, available inventory for sale among single family homes is down 25% from this time last year which is a HUGE difference.

There currently is a huge discrepancy between homes in the higher price level versus homes in the lower priced level. The lower priced properties are seeing excellent activity among those that are priced well and in good condition. Higher priced properties are still very difficult to sell because of the lack of demand compared to how many properties are available.

Advice for Buyers:

Typically we see a large influx of properties this time of year, but properties have been slow to come available. When a great property under $400,000 has hit the market recently, it has been met with immediate demand from buyers. To be sure you get the property you want, be sure to pay attention and be ready to act immediately when the right one comes along.

If you are considering a purchase in the upper price ranges, there are some amazing deals available. Typically, the higher the price range you are looking in, the bigger the discount you will be looking at compared to the last few years. For example, properties priced over $1,000,000 have seen major price reductions recently increasing the value of what you can buy significantly. With interest rates as low as they are (even on jumbo rates), if you have been considering a high-end home, your timing couldn’t be better if you act soon.

Advice for Sellers:

There are buyers currently in the market place waiting for a home to come on the market that fits their criteria. Your home may be exactly what they are looking for. Currently, there are very few properties on the market in good shape under $400,000.

The unfortunate news for anyone who has a home to sell over $500,000 is that your home will most likely take longer and will sell for less than you hoped. There simply aren’t enough buyers in the market to generate the demand necessary to keep prices stable. If you need to sell, you’ll need to be aggressive in your asking price, advertise with great pictures, and make sure there are no glaring defects that will turn buyers off from making an offer.

Estes Park Real Estate Market Statistics

Single Family Homes

139 – Active on the market (13 less than last month and 46 less than this time last year)
17 – Sold in March (5 more than last month and 7 more than March 2012)
33 – Currently Pending (2 more than last month and 16 more than this time last year)
$339,950 – Median Price of trailing 12 months of sales
$800,000 – Most expensive home sold in March
$148,000 – Least expensive home sold in March
9.8 Months Supply of Inventory (Also called Absorption Rate)

Condominiums and Townhouses

95 – Active on the market (1 less than a month ago and 9 less than this time last year)
10 – Sold in March (5 more than last month and 3 less than March 2012)
25 – Currently Pending (10 more than last month and 18 more than this time last year)
$249,000 – Median Price of trailing 12 months of sales
$445,000 – Most expensive condo sold in March
$159,900 – Least expensive condo sold in March
11.3 Months Supply of Inventory (Also called Absorption Rate)

Vacant Land

120 – Active on the market (10 more than a month ago and 5 more than this time last year)
4 – Sold in March (2 more than last month and 3 more than March 2012)
5 – Currently Pending (the same as last month and 3 more than this time last year)
$160,000 – Median Price of trailing 12 months of sales
$165,000 – Most expensive land sold in March
$125,000 – Least expensive land sold in March

Do keep in mind that statistics and advice like what I have shared above are very broad and focuses on the big picture. For information and statistics specific to your property, I highly recommend consulting a local real estate professional that specializes in Estes Park real estate. There is no substitute for local knowledge and experience!

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