Simple Math of Real Estate Markets

A few days ago the Rocky Mountain News published an article headlined “Worst January Ever For Home Sales.” What criteria they used to determine it was the worst ever was not disclosed.  The Rocky simply broad stroked the criteria as “by many measures.”  I would like to know what measures make this the worst ever.  In my opinion it was pretty darn good.  The Get Home Denver Team had the best month in over a year in January!

It is true, some statistics took a beating year over year.  Average price dropped 17.8%, number of sales dropped 15.8%, etc.  What is also true is that inventory is down almost 20%! Lower inventory level is the key to the Denver market recovery.  Many people are waiting to put their homes on the market so they don’t have to compete with the large number of foreclosures and short sales.  This is a good thing!

The truest test of market recovery is the activity in the market place.  When I say activity, I refer specifically to buyers out looking for homes.  The number of property showings in January 2009 was 40% greater than 2008! How’s that for the worst month ever?

Active buyers + Decreasing Inventory = Better Real Estate Market!

Really pretty simple.  If the worst January in history means a better real estate market, I’ll take it!