Existing-home sales in the metro area stabilized in October after falling sharply in September, but home prices remain soft, according to statistics released Tuesday.
More sellers seem willing to accept a lower price, knowing they will likely purchase their next home at a discount, said Gary Bauer, an independent real-estate analyst.
“Sellers are much more educated and realistic about what is going on in the market,” Bauer said.
Buyers purchased 4,133 homes in October, compared with 4,108 in September. The 0.6 percent increase contrasts with a sharp 13 percent drop in September from August.
The inventory of unsold homes fell 5.5 percent to 29,722 in October compared with 31,450 in September.
The median price of condos sold in October was $152,000, a 4.9 percent drop from the same month a year ago. Single-family home prices fell about 1 percent to $247,600 over the same period.
“You don’t want to overprice,” advised Kelly Posiviata, a broker-owner with KP Properties Metro Brokers in Arvada.
A year ago, it took 60 to 70 days to sell a home in the metro area on average. Now it is taking closer to 100 days, she said.
With buyers turning their focus to the holidays and family matters, activity is expected to slow in the last two months of the year.
Sellers also face competitive pressures from new-home builders, who are trying to clear inventory before the year ends.
“New-home builders are really out there and doing whatever it takes to get transactions closed between now and the end of the year,” Bauer said.
Homebuilder Lennar has not only cut prices but has boosted its incentive package to $50,000 at an infill project near his home in Lakewood, Bauer said.
Water Tower Village, a new development in Olde Town Arvada, is offering $25,000 rebates, said Posiviata.
Posiviata, who also works with investment properties, said the volume of apartment buildings sold in the metro area this year is running double the volume of recent years.
She attributes that to the area’s high foreclosure rate, which has increased the demand for rental properties as more families lose their homes.
Staff writer Aldo Svaldi can be reached at 303-954-1410 or asvaldi@denverpost.com.
