This 2,577-square-foot home in Lakewood is on the market for $272,500, very close to the average price of a home sold in January.

It might not be a good time to be in the “For Sale” sign business – at least not in the Denver area.

The number of homes for sale in the Denver area plunged by a record 41.6 percent in January from January 2011, shows a report released today by independent broker Gary Bauer.

At the end of last month, there were only 10,443  unsold homes on the market – 8,356 single-family homes and 2,087 condos – compared with a total of 17,890 homes on the market in January 2011. It was the lowest number of unsold homes on the market in a January since 2001, when there were 9,540 unsold homes on the market.

Bauer said he wasn’t surprised by the dramatic drop. “I actually thought it was going to drop more,” he said. “I thought it would fall to 10,000.”

The inventory of unsold homes also fell by 5 percent from December, when there were 10,993 unsold homes on the market, according to Bauer, who bases his monthly housing report on Metrolist data.

“We were looking at those numbers this morning,” said Bruce Alexander, president and CEO of Vectra Bank Colorado. “There is only a 3.3-month of supply of homes on the market, which is unbelievable.”

Builders may help fill void

With relatively few new homes being constructed, and a dearth of resale homes on the market, is only a matter of time that home prices will start to rise, he said.

“Homebuilders are starting to make a move,” to build more homes to fill a void created by the lack of resale home, Alexander said.

And while year-over sales activity was strong – under contracts rose by 10.8 percent from January 2011 and closings increased by 14.6 percent, the overall housing market showed a drop in prices.

“You can tell we have really hit bottom,” and houses should start to appreciate, he said.

The average price of a home sold in January was $272,328 compared with $277,922 and $275,610 in January 2011 and December, respectively. The median price of a home  also was down to $218,855 in January from $225,00 in January 2011 and $230,000 in December.

But that doesn’t tell the whole story, Alexander said.

“That is true in the aggregate, but what I think you need to do is look at price point strata,” Alexander said. “My sense is there is a lot of demand for homes priced under $300,000, while when you look at homes priced at $1 million or above, they are selling for 30 percent or 40 percent from where they sold at the peak of the market.”

Doug Kincaid, of the Kincaid Realty Group with RE/MAX of Cherry Creek, said the low inventory is good or bad, depending on whether you are a buyer or a seller.

Listings needed

“It’s been a little bit of a problem for some buyers to find a home,” Kincaid said. “But three years ago, when we had a glut of homes on the market, buyers had an inability to make a decision because they were so overwhelmed with choices. But now is a fabulous time to be listing your home. I’m coaching people to get their homes on the market now, when there isn’t much competition.”

Peter Niederman, CEO of Kentwood Real Estate, described the inventory as “painfully low.”

Yet, he was pleased to see 3,486 homes placed under contract last month, a 23.1 percent increase from the 2,832 in December, and a double-digit jump from the 3,147 in January 2011. The 2,470 closings in January were down 21.7 percent from December, but up substantially from the 2,156 in January 2011. Closings represent housing activity from previous months, so they are a lagging indicator of the health of the housing market.

But home showings are a leading indicator, and those have been strong, Niederman said.

“Brokers are busy showing homes and a lot of contracts are being written,” Niederman said. “I think there is a little bit of urgency with buyers, especially for conforming loans below $417,000. That means homes that are selling as much as $450,000 to $500,000.”

One nice thing is that while sales are softer at the high end, there is activity in all price points.

“We’re seeing traction across the market, which was not true a couple of years ago, when most of the activity at the lower end.”

Stable stock market helps

He also said that the relative stability in the stock market bodes well for home sales.

“It has a psychological effect when there are these wild swings – down 300 points one day, up 500 points the next. Even if it results in a net gain of 200 points, it unsettles people to have such violent swings. We’re only six weeks or so into the new year, but so far the financial markets have been fairly stable and steady.”

While all markets are local, and Denver is doing better than most of the country, Niederman said the global economy is the wild card.

“I think if we were just talking about the U.S., we are moving in the right direction with unemployment dropping, which will lead to more consumer confidence. But global events are something we have no control over, but they still impact local markets. Right now, people are focusing on Greece. Who knows what will be next? I don’t want to sound like a cliche, but I am cautiously optimistic about Denver’s housing market. I think we’re going to see a 3 percent to 5 percent increase in sales and dollar volume this year over last year.”

Contact John Rebchook at JRCHOOK@gmail.com

Related Posts:

• Metrolist unveils updated search engine
• Home market improves in 2011
• Home inventory plunges 30%
• Metrolist launching service
• Home market holding up

Metrolist effective in early January, began providing Virtual Office, Hillside’s flagship product, along with other online tools, to its 14,000 members.

“Hillside Software has been a market leader in Denver for over 15 years and this arrangement allows us to make the firm’s top products available to all of our members,” said James T. Wanzeck, Metrolist Board chairman and president of RE/MAX Masters. “The partnership will enable real estate brokers to better serve the needs of today’s home buyers and sellers.”

Greenwood Village-based Hillside Software has developed a full suite of real estate software ranging from MLS productivity tools to online marketing services for real estate brokers.

“We’re excited to be able to bring Virtual Office to real estate brokers with Metrolist,” said Alex Levy, Hillside Software’s president. “With the economic recession and slower housing market, our customers are looking for ways to maximize their budgets while still delivering top-notch services for buyers and sellers. Our partnership with Metrolist will allow this to happen in 2012.”

As part of the agreement, Metrolist will augment its services with a set of MLS tools from Hillside Software that includes Virtual Office, a comparative market analysis package, a client e-mail alert system, and statistical analysis software. These products, combined with the most accurate housing data available from the MLS, will make Front Range real estate brokers better able to manage the complexities of today’s market.

“Many of our 14,000 members are already familiar with Virtual Office,” said  Wanzeck. “Now they’ll get the professional level package as well as Hillside’s market statistics tool with their Metrolist membership. We’ll be able to deliver more value in 2012 to real estate professionals and give them powerful tools.”

Other Hillside Software products such as online marketing and website packages will be made available from the Metrolist Marketplace for purchase.

“When combining the MLS productivity tools with the other ancillary products we offer, Colorado brokers will have very powerful options to grow their businesses,” said  Levy. “This is a very exciting time for us and we’re proud to have been able to put together this important partnership with Metrolist.”

Contact John Rebchook at JRCHOOK@gmail.com

Related Posts:

• Denver lands close to 30% of $1 million-plus home sales
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• Luxury market little changed in 2011
• Luxury home inventory plunged 35%
• Metrolist unveils updated search engine

This Cherry Hills home sold for $8.2 million last year, the highest price paid in the metro area.

The Denver-area luxury market in 2011 was little changed in terms of sales and dollar volume from 2010, but like the overall market, the active inventory of homes priced at least $1 million plunged, according to a report released today.

At the end of last year, there were 566 single-family unsold homes in that price range for sale, a 35 percent drop from the 875 at the end of 2010, shows a report released  by independent broker Gary Bauer.

The number of unsold condominiums on the market fell by 28 percent to 53 from 87.

“The big thing is that for the $1 million-plus market, like every other market, inventory has been reduced dramatically,” said Bauer, who uses Metrolist Inc. data to track sales in an 11-county area.

Some brokers who specialize in high-end homes think that will help boost prices, because typically a smaller supply, combined with demand that is relatively to the same, usually results in higher prices.

“I’m not so sure about rising prices,” Bauer said. “I think the discounts already have been priced into homes Homes on the market are selling for less than they would have in prior years. Sellers are much more realistic in terms of the asking price, and prices have been reduced.”

Dan Polimino, who this week launched a luxury home division at Keller Williams Realty DTC with business partner Gary Lohrman, said nothing in the numbers surprise him.

“In essence, clearly from 2010 to 2011, people bought the existing inventory and nothing new came on the market,” Polimino said. “What this will mean is A, prices will stabilize, and B, dare I say, they will increase. But there are a couple of components to that equation. No. 1, the inventory has to continue to come down and No. 2, demand needs to come up. I’m not so sure that the demand is going to rise.”

Polimino said there are several things making the well-heeled skittish.

First, he said, is the general economy, which faces even more uncertainty because this is a Presidential election year. “Some people are holding back from pulling the trigger, because they want to know who is going to be elected President, first.”

Also, borrowing money at today’s historic low interest rates is a hassle even for the well-heeled, he said.

“There are people out there who have the cash to pay for a home, but they say why would I do that, if I can borrow somebody else’s money at 5 percent? Even though there is more money available for these kind of loans than a couple of years ago, they find with all of the guidelines and documentation involved, it is just ridiculous. It is another barrier and becomes an impairment, so they say, the hell with it. I’ll just wait.”

On the other hand, those qualified to buy a seven-figure home are finding spectacular deals. He said there are homes out there in which the current owner has invested north of $6 million and now it can be purchased in the neighborhood of $3.3 million.

“Anytime you can get a home for 50 percent off, it might be the time to pull the trigger, even it is an election year.”

Buyers paid $763 million for 502 single family homes last year, compared with $773 million for 505 single-family homes in 2010. The average price of a single-family home that sold was unchanged at $1.5 million.

“The sweet spot remains in the $1 million to $1.5 million price range,” Bauer said. “There are still more expensive homes selling, but they are far and few between.”

The most expensive single-family home last year sold for $8.2 million for a 5-bedroom, 12,298-square-foot home in Cherry Hills Village.

Meanwhile, 38 luxury condominiums sold last year, 10 percent more than the 32 in 2010. Sales volume for condos rose 15 percent to $56 million from $49 million, although the average sales price fell by 3 percent to $1.4 million from $1.5 million. The highest price paid for a condo was $2.85 million for a 3,120-square-foot unit.

Bauer’s report includes the counties of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Gilpin, Jefferson and Park.

In December, there were 39 luxury single-family homes sold, compared with 42 in December 2010. The average sold price in December was $1.5 million, and the median sales price was just under $1.3 million. Of those homes, 10 were in Douglas County, nine were in Boulder and Denver counties, five were in Arapahoe, four were in Jefferson and one in Broomfield and Gilpin counties.

Four luxury condos, all of them in Denver, sold last month, compared with one in December 2010. The average condo sale price was $1.62 million, and the median sales price was $1.575 million.

Contact John Rebchook at JRCHOOK@gmail.com

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Metrolist, the largest MLS, or Multiple Listing Service in the state, is offering Colorado buyers, sellers and brokers an “unrivaled ability” to search for properties and open houses, find local real estate agents and coordinate home buying searches with a broker, the organization said.

The new site offers simple, yet powerful home searching capabilities for Colorado homebuyers, Metrolist said. The search engine incorporates a variety of tools to help in the home buying process, including an aerial-view map search with rooftop accuracy and parcel line overlays, custom searches tailored to regional and market specifics, and enhanced listing information with access to school and neighborhood data. Through the site or a smartphone application, home buyers will have access to:

• Property Alerts – Property alerts notify you when potential properties become available.
• Open Houses – Search for local open houses to tour properties first-hand with turn-by-turn directions.
• Home Valuation – Check out your home’s current estimated value.
• Rentals – A searchable rentals database is coming in early 2012.
• Realtors- Find an agent or office.

“For the first time, Colorado consumers and real estate agents have a real estate search website that truly does it all,” said Metrolist interim Chief Operating Officer Kirby Slunaker. “Whether you’re a homeowner who wants to value your home or you’re a homebuyer looking for the perfect home buying experience, we offer the tools to get the job done.”

Metrolist selected Real Estate Digital, based in Irvine, Calif., to power the new site. Real Estate Digital is a provider of integrated technology, media, and data solutions to the real estate industry.

“Clearly, consumers with independent access to MLS data like listings and open houses are much better informed,” said John Hensley, Chief Product and Technology Officer for Real Estate Digital. “The new will give consumers just that kind of access through Metrolist’s individual brokers and agents. In the end, it’s all about maximizing the consumer experience.”

Metrolist supports the largest network of Realtors in Colorado with the most comprehensive database of real property listings throughout the Front Range. Home sellers planning open houses are encouraged to have their real estate professional to schedule the event in the Denver-based MLS.

“Our new public website allows homebuyers to better coordinate with their local real estate professional using the most detailed and timely housing information, greatly improving on what’s currently available in the marketplace,” said James T. Wanzeck, chair of the Metrolist board.

To check out REColorado.com, please visit this link.

Contact John Rebchook at JRCHOOK@gmail.com

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This Denver home, priced at $275,000, is very close to the average price of a home that sold in Denver.

Denver-area home buyers snapped up slightly more than $10 billion of homes last year, at a time when the inventory of unsold houses fell to an 11-year low, according to a comprehensive housing report released today.

“Was 2011 a dynamic year that is going to go into the record books? No. But it was better than 2010 and this year probably will be better than 2011,” said independent broker Gary Bauer, who released the monthly and year-end report based on Metrolist data.

Bauer’s analysis shows that 39,387 homes and condos sold and closed last year 1.5 percent more than the 38,817 in 2010.

The total sales volume was just under $10.1 billion, while in 2010, it had dipped just below $10 billion, the first time that had happened in non-inflation adjusted dollars in a decade.

“Overall, I think the market was a really good market last year,” Bauer said. “Average prices were up a bit in December, showing a little bit of appreciation, and the number of transactions were similar to those last year.”

Meanwhile, there were only 12,531 unsold homes on the market in December, a 33.6 percent drop from the 18,867 on the market a year earlier. Inventory numbers also were down 12.2 percent from the 14,275 in November.

Peter Niederman, president and CEO of Kentwood Real Estate, said the low inventory is “mind boggling. Absolutely mind boggling.”

A year ago, he noted, experts were worried that the market would be flooded with “shadow inventory,” the homes that banks had acquired through foreclosures, but had not yet put on the market. “It is almost like, if you have shadow inventory, put it out there for us to sell,” Niederman said.

Sellers in a waiting mode

“The individual consumer is sitting on the fence at this time,” Bauer said. “If they don’t have to sell, they are holding off and waiting for a time on the horizon that is better than today.”

At the same time, he is sensing a growing pent-up demand.

“With interest rates at historic lows and with sellers serious about selling their homes, people are having this feeling that it is not going to get better than this,” Bauer said. “On an individual basis, they are going to achieve another item on their dream list, buying their home.”

The average price on a year-to-date basis for a single-family home sold in 2011 was $279,858, compared with $282,080 in 2010. The average closing price in December was $275,610 compared with $275,951 in November and $274,625 in December 2010.

The median price of a home, on a year-to-date basis and in December, was $230,000, compared with $235,000 at the end of 2010 and $225,000 in December 2010.

The average price of a condo closed at the end of 2010 was $159,141, compared with $161,005 in 2010, while in December it was $166,420, compared with $166,841 a year earlier, and $153,526 in November.

Niederman had predicted that closings would be up 3 percent to 5 percent from last year. “I came up a little short,” Niederman said. “Overall, I would say this is not a great report, but I would not say it is a bad report. It is a steady, it is a stable market. When I look at how most of the other 19 MSAs are doing (on the Case-Shiller) index, I am very pleased.’

Barring some catastrophic event, particularly on the international scene, Niederman said he thinks the Denver market is poised to do better this year than in 2011. “This year is going to be all about consumer confidence and jobs. If we could match consumer confidence and job growth with all of the other things happening that would be very good for the housing market. And I think this being an election year might help job growth.”

He also said the entire economy, and indirectly the housing market, will benefit from the boon in apartment construction. “All of these multifamily units that are going to break ground means more demand for lumber, more steel, roofing material, appliances, mill work, trim. You name it. That is going to be very good for the economy and the construction industry. That will create jobs, which eventually will create more demand for housing.”

Good news, bad news

“I think there was some good news and there was some bad news, given the whole story of all of the numbers,” said economist Patty Silverstein, principal of Littleton-based Development Research Partners and the chief economist for the Metro Denver Economic Development Corp.

The bad news was that home prices weren’t a bit a higher, she said.

“I’m a little bit disappointed that prices didn’t come up a bit more, but the good news is that we basically were able to break even in prices,” Silverstein said. “The reality is that we were able to hold our own and not many markets across the country were able to do that, if that is any consolation to someone trying to sell their home.”

However, she said that the number of foreclosures and short sales on the market continued to drop the overall market, she said.

“Even though foreclosures were down, there are enough of them to depress overall sale prices,” she said.

She agreed with Bauer, that barring some unforeseen international or domestic even, that 2012 should be a better market than 2011.

“I think people are going to start to realize there are some tremendous deals out there,” Silverstein said.

Home builders time coming?

The dearth of resale inventory, meanwhile, presents an opportunity for home builders to fill the void.

“It’s rather surprising to me that so many people have pulled their homes off the market,” Silverstein. “Is it people are just waiting for a better time to sell, or is it a case because we have not been building anything in recent years, there is a true lack of inventory? In any case, it appears we are getting closer to the time to justify more new home building. It’s kind of exciting to consider that with just new household formations, and kids living in their parents’ basements and parents living in their kids’ basement, that people will start to push to have their own space.”

Gene Myers, president of New Town Builders, already is starting to see that happen.

Last year, his company sold 89 homes, more than double the 42 in 2010.

Encouraging factors arguing for a continued recovery in the housing market this year, he said, include:

• Lots of people seeking housing, such as echo boomers and retiring baby boomers.
• Rising rental renewal rates in apartments.
• Low apartment vacancy rates.
• Historically low mortgage rates – in some cases below 4 percent for a 30-year, fixed-rate loan for qualified buyers.
• Low housing prices.

“If a (consumer) feels safe in his or her job or economic situation, now is a great time to buy,” Myers said. He said the main limit on home building growth will be the supply of available lots. “Otherwise, I could foresee another good year for building.”

Jim Nussbaum, a broker with the Kentwood Co., who is in his 41st year of selling homes, continued his practice of handing out large tins of nuts to current and past clients.

“This year I’m at the point where I handed out about 245 cans of nuts,” he said. Nussbaum said that he thinks many of the recipients believe that 2012 will be a better time to sell than 2011.

“It was such a whirlwind deal and I have to go back and check my leads, but I think I should get several listings from them,” Nussbaum said. “I think it is going to be a good year.”

However, one high-profile home is officially off the market, at least temporarily.

Kentwood Real Estate broker Jim Nussbaum stands on the estate of Jim Crowe's home in Broomfield, which Crowe has taken off the market, at least for the time being.

Jim Crowe, the CEO of Broomfield-based Level 3, has taken his Cherry Hills estate off the market, which most recently was listed at $18.9 million.

“Jim is just kind of hanging tight right now,” Nussbaum said. “He did allow me to show it one time after he took it off the market. I think if I had somebody who was really qualified, it would be Ok to do a showing.”

Nussbaum, who is the early stages of writing a book based on four decades of selling homes, however, is still listing a penthouse condominium at 25 Downing St. that is priced at $10.5 million.

“That is my longest running listing, but the sellers understand that it will take quite some time to find a buyer for a one-of-a-kind property like this one.”

Beyond homes with eight-figure price tags, Nussbaum said a number of factors have come together to make it an attractive time to buy.

“I’m telling people that interest rates are at all-time lows, the inventory is incredibly low and you have to think that people listing homes at this time are reasonably motivated. This is the time to get something accomplished.”

Selected Snapshot of inventory

Year	January	March	June	September	December
1990	14,753	16,053	16,711	14,663	11,839
1991	11,810	13,047	13,669	12,687	10,147
1992	10,568	11,842	12,602	12,540	9,631
1993	9,076	9,020	9,500	10,349	7,711
1994	7,748	7,938	9,557	10,530	8,569
1995	8,716	9,601	11,162	11,649	9,854
1996	10,196	10,628	13,499	13,584	11,000
1997	11,011	12,240	13,844	14,247	11,093
1998	11,257	8,899	13,601	13,449	10,352
1999	9,065	8,441	9,188	10,310	8,097
2000	8,010	13,147	10,482	10,998	8,820
2001	9,540	18,322	16,826	19,180	16,482
2002	16,200	23,967	21,538	23,370	20,676
2003	21,288	24,909	26,533	26,071	21,623
2004	21,946	23,023	28,043	26,975	20,891
2005	20,917	27,309	25,817	27,200	23,572
2006	24,387	26,430	31,900	31,450	24,534
2007	24,350	26,430	30,256	30,335	24,603
2008	24,489	25,516	26,104	23,923	19,600
2009	19,748	20,628	20,853	19,834	16,456
2010	17,785	20,574	23,240	23,332	18,887
2011	18,804	19,320	19,580	17,139	12,531

Year	Home closings	Sales volume	Inflation-adjusted prices in 2011 dollars
1991	26,410	$2,669,553	$4,434,162
1992	33,477	$3,572,215	$5,760,101
1993	35,598	$4,460,312	$6,983,086
1994	38.072	$4,779,902	$7,296,607
1995	36,038	$4,910,865	$7,289,927
1996	38,101	$5,515,801	$7,953,089
1997	40,185	$6,180,791	$8,712,027
1998	45,951	$7,775,673	$10,791,966
1999	46,742	$8,769,875	$11,908,802
2000	48,611	$10,558,877	$13,911,275
2001	47,832	$11,152,517	$14,254,428
2002	47,919	$11,713,824	$14,730,508
2003	47,966	$12,168,929	$14,961,830
2004	53,482	$14,223,031	$17,033,754
2005	53,106	$14,940,422	$17,307,562
2006	50,244	$14,516,321	$16,289,817
2007	49,789	$14,031,634	$15,309,857
2008	47,837	$11,954,290	$12,560,990
2009	42,070	$10,198,333	$10,754,177
2010	38,818	$9,976,222	$10,350,225
2011	39,387	$10,063,056

Source: Gary Bauer

Closings, Dollar Volume

Year	Home closings	Sales volume	Inflation-adjusted prices in 2011 dollars
1991	26,410	$2,669,553	$4,434,162
1992	33,477	$3,572,215	$5,760,101
1993	35,598	$4,460,312	$6,983,086
1994	38.072	$4,779,902	$7,296,607
1995	36,038	$4,910,865	$7,289,927
1996	38,101	$5,515,801	$7,953,089
1997	40,185	$6,180,791	$8,712,027
1998	45,951	$7,775,673	$10,791,966
1999	46,742	$8,769,875	$11,908,802
2000	48,611	$10,558,877	$13,911,275
2001	47,832	$11,152,517	$14,254,428
2002	47,919	$11,713,824	$14,730,508
2003	47,966	$12,168,929	$14,961,830
2004	53,482	$14,223,031	$17,033,754
2005	53,106	$14,940,422	$17,307,562
2006	50,244	$14,516,321	$16,289,817
2007	49,789	$14,031,634	$15,309,857
2008	47,837	$11,954,290	$12,560,990
2009	42,070	$10,198,333	$10,754,177
2010	38,818	$9,976,222	$10,350,225
2011	39,387	$10,063,056

Source: Gary Bauer

Related Posts:

• Home market holding up
• Home inventory hits low for year
• Luxury home inventory plunged 35%
• Metrolist unveils updated search engine
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The late Steve Jobs holds up an iPad2.

To get your hands on the hot new tablet from Apple, order one of the many products from the recently launched Metrolist Marketplace, a one-stop shopping service to find, research and purchase real estate products.

“We wanted an end-of the year promotion to draw attention to our new Marketplace,” said Melissa Olson, of Metrolist, the largest Multiple Listing Service in Colorado. Metrolist distributes listings to more than 4,000 broker websites and provides services and tools to more than 16,000 real estate professionals.

“Also, we’ve added a number of services and vendors to Metrolist Marketplace since we launched in November, and we thought this would be a good way to draw attention to the new features,” Olson added.

Every time you buy a product on Marketplace between now and Dec. 31, you are automatically entered to win the iPad2.

“So far, we only have 60 entries, so your odds are pretty good,” Olson said.

The winner’s iPad2 will be loaded with a 12-month subscriptions to Hillside’s Virtual Office and QRLeads4Me Pro. Virtual Office is a third-party software  app that provides MLS information in a different format than provided by Metrolist, while QRLeads allows listing brokers to create a QR for each property that can be scanned by mobile devices that will take viewers to a page with details on the real estate.

Many of the products available in the Marketplace do not require Metrolist MLS membership. Some of the more popular products include:

• iAnalyze REI – Web-based application for real estate investment that generates complete analysis for commercial and income property investment opportunities.
• BuildFax – A brand new product available exclusively in Colorado in the Marketplace. With an unlimited account, you have access to BuildFax Buyer’s Reports and BuildFax Neighborhood Pulse. The Buyer’s Report allows you to search by address instantly and the property improvement history on more than 74 million properties nationwide. Information is presented in an easy-to-read report in a matter of seconds. Neighborhood Pulse tells you when the last time homes in neighborhoods that you search were updated.
• City Market Report from 10K – Consumer-friendly market trend reports on the cities you live and work in. Updated each month with fresh data, these reports will help your clients see how market conditions affect their buying and selling decisions with intuitive visuals and an attractive layout.
• QR Code Leads4Me – QR Code enabled property websites for you, your company or organization. Fully integrated with your own branded iPhone/Android App. Turn visitors to your listing into clients for life with QR code enabled property websites. Fully integrated with our iPhone/Android App and Lead Management software. Use QR Codes to drive leads to your mobile website. It provide the tools to turn them into sales.

For more information and a chance to win the iPad2, visit Metrolist Marketplace at this Marketplace Metrolist link.

Contact John Rebchook at JRCHOOK@gmail.com

Related Posts:

• Luxury home inventory plunged 35%
• Metrolist unveils updated search engine
• Home market improves in 2011
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• Home market holding up

This 1,927-square-foot Littleton home sold last month for $276,000, very close to the average price of a home that sold in November in the Denver area.

The number of unsold homes on the Denver-area market plummeted 30 percent in November from a year earlier, likely the biggest year-over-year drop in the metro area’s history.

“The headline is that the inventory is down 10 percent on a month-to-month basis and down 30 percent year-over-year,” said independent broker Gary Bauer who today released a housing report based on Metrolist data.

There were a mere 14,275 unsold homes on the market last month, compared with 20,392 in November 2010 and 15,794 in October.

“It is unbelievable,” said Peter Niederman, CEO of Kentwood Real Estate.

The last November there were fewer unsold homes in the market was in 2000, when there were only 10,282 homes listed by area Realtors.

The unsold inventory peaked at 31,989 in July 2006.

Bauer said he believes the 30 percent drop is the largest ever. Still, he said it is a good news-bad news story.

“The good news is that there are still buyers out there,” Bauer said. “The bad news is they have less to choose from. Long-term, if this trend continues, we may have some real concerns for the market. This might be a very good idea for people who were holding off putting their home on the market until next year to consider to do so now, because there is so little to choose from.”

By the numbers

Other than the drop in inventory, the other metrics were not too bad:

• There were 3,365 homes placed under contract, a 12.5 percent drop from October, largely for seasonal reasons, but up 8.5 percent from the 3,101 in November 2010.
• In the first 11 months of the year, 44,541 homes have been placed under contract, down 4.5 percent from the 46,621 during the same period last year.
• Closings were even better. Some 3,068 homes closed in November, up 15 percent from the 2,666 in November 2010, and down 3.6 percent from October.
• In the first 11 months of the year, 36,231 homes have sold, 1.2 percent more than the 35,794 during the same period in 2010.
• Total sales volume is up slightly to $9.2 billion, compared with $9.1 billion in the first 11 months of 2010. Single-family homes accounted for $8.1 billion of the sales volume this year, while condo sales were unchanged at $1.1 billion from 2010.
• The average price of a single family home that closed in November was $275,951, compared with $281,466 a year earlier and $269,503 in October.
•  The median price of a single-family home that closed in November was $230,300, compared with $233,990 in November 2010 and $226,021 in October. The median price of a condo was $125,000, unchanged from October of November 2010.

“Every metric, other than the inventory, is relatively stable,” Niederman said.

“I think we are seeing such a big drop in inventory is because a lot of people are saying they are going to take a wait-and-see attitude, before they put their home on the market,” Niederman said.

Niederman expects another big drop in the inventory in December, but more consumers may brave listing their homes in early 2012.

“It will be really interesting to see what happens in January,” Niederman said. “A lot of people will not put their homes on the market between now and the end of the year before the holiday season.”

Niederman said that he thinks that home prices are doing better than the numbers reflect.

The overall prices are being dragged down because of haircuts sellers of $1 million-plus homes are taking, as well as short-sales at the lower end, in which the bank agrees to accept less than the mortgage amount.

“There are also some REOs, that is foreclosures, also hurting the overall prices,” Niederman said. “I think if you look at homes with conventional loans, those at $417,000 are below – or typically homes that sell for $470,000 or less – you will find they are very stable or even appreciating a bit. We have even seen bidding wars, but probably only out of 1 out of every 10 sales.”

Bullish on 2012

Shannel Ryan, sales manager at Fuller Sotheby’s International Realty Denver, is quite bullish on the Denver-area housing market in 2012.

“We are starting to see a little increase in consumer confidence and that affects not only the buy side, but the mind-set of the seller as well,” Ryan said. “More and more, I think people are seeing that if they are a losing a little bit as a seller, they will more than make up for it by buying right. No offense, but part of the problem is that people read all of these negative reports in the media. But the overall market here in Denver and Colorado is not as bad as the picture being painted.”

Although since all real estate is local, different pockets of the market will out-perform others.

“On a micro-level, it makes a difference whether you are in Castle Pines Village or City Park,” Ryan said. “We can’t get enough homes to sell in Country Club and Hilltop, but in a gated community like Castle Pines Village, you need to expect that the days on market for a home will be quite a bit longer.”

New home market filling resale void

One silver lining to the dearth of supply of previously owned homes is that a lot of consumers appear gravitating to new homes.

“We are hearing a lot of comments from our builder members that there are just not a lot to choose from in the resale market,” said Jeff Whiton, CEO and President of the HBA of Metro Denver.

“I heard from a lot of our members in November that they were seeing a big increase in traffic from people considering new homes,” he added. “A lot of new homes being constructed by home builders are Built Green or Energy Star-designated homes and those are really gaining traction for in the market.”

It’s not just entry level new homes that are selling, as it has been during the past few years.

“I was talking to one builder last night who said he is seeing a lot of activity in the $450,000-plus market, which had been kind of the hardest-hit part of the market,” Whiton said.

The number of new homes being sold have been accounting for about 11 percent of all homes that have been sold, half of where they were at during the buying frenzy of the mid-2000s.

“I think we are going to start seeing the new housing market penetration pick up again,” Whiton said. “Our objective is to get it back up to 20 percent or 22 percent. I can’t really predict when that will happen, but I do see it climbing right now.”

Chris Mygatt, president of Coldwell Banker Residential in Colorado, called described the low inventory number as “remarkable.”

He said that a big part of the low number is a Denver-area economy that while not robust, is better than many places in the country.

“I think because of our relatively decent employment picture those who do not have to sell their homes are going to wait-out the market,” Mygatt said.

Meanwhile, the low inventory numbers are putting upward pressure on prices, he said.

“In that respect, a low-inventory is healthy,” he said.

Last year, he noted, the first half of the year was driven by “those amazing tax credits. The second half of the year was simply devastated,” he said.

He said is it is a testament to the Denver market that without tax credits, sales are slightly ahead of where they were at this time in 2010.

Niederman noted early in 2011, most observers were predicting an over-supply of homes on the market, not a shortage.

The only question was not if Denver and other markets were going to be enveloped by the shadow market – homes held by banks not yet on the market – but the magnitude of the shadow.

“It didn’t happen,” Niederman said. “And I hear that next year we will see a big drop in foreclosures, mostly replaced by short sales. Lenders are realizing that they lose less money in a short sale than in a foreclosure. They might get 75 cents on the dollar for a short-sale, compared with 65 cents for a foreclosure. And if they do a foreclosure, the house sits vacant and they have to hire a property management company. It’s better for banks to keep someone in that house.”

Early in the year, Niederman predicted that 2011 would be slightly better than 2010, at a time when many thought the market was heading off the cliff.

His prediction appears to be on the money, despite a number of unexpected events that have roiled the markets, primarily the economic turbulence in Europe.

“I’m glad that I took a contrarian point-of-view when there was so much doom and gloom in the market,” Niederman said.

Contact John Rebchook at JRCHOOK@gmail.com

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Independent broker Gary Bauer, who each month tracks the luxury housing market – which he defines as those selling at $1 million or more (as well as tracking the overall Denver-area market) has sliced the housing market to a level just below the million-dollar cut off.

Today, Bauer released his first “Signature Properties” report, which tracks the sales of homes that closed between $750,000 and $999,999.

While the $1 million-plus market in the first 10 months of 2011 is flat when compared with the same period in 2010, the Signature market is up about 11 percent both in terms of closings and dollar volume.

There have been 550 single-family home sales in the Signature price range this year, representing $465.6 million in sales, compared with 494 for $418.3 million, in the first 10 months of last year.

“When I was going through the data, I noted that quite a few of what I am calling Signature homes had originally been priced at above $1 million, when we were a little closer to the top of the market,” in the 2006-2007 time frame, Bauer said

For the month of October, some 42 homes sold for $35.2 million, compared with 44 in October 2011 for $36.2 million. Last month, the average Signature sold price was $839,115 and the median sold price was $828,900.

Bauer found that 12 of the sales were in Denver, 11 in Douglas County, eight in Arapahoe County, seven in Boulder County, two in Jefferson County, and on each in Adams and Park counties.Bauer based his report on Metrolist data. He said he thinks well-heeled buyers like the idea of buying a $1 million home for $825,000.

“I think there is an advantage to that,” Bauer said.

After all, once the market start to recovers, their dream home could quickly regain the cachet of carrying a 7-figure price tag.

Contact John Rebchook at JRCHOOK@gmail.com

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Metrolist, Inc., the largest Multiple Listing Service serving Colorado, is launching a new e-commerce platform at 10 a.m. on Tuesday called Metrolist Marketplace.

The Marketplace offers a one-stop shop for Colorado real estate professionals to find, research, and purchase real estate tools to make their businesses stronger. The site is the first of its kind in the Colorado real estate market.

Metrolist Marketplace features a variety of technology products and services that provide a wide range of resources for real estate professionals.

Metrolist Marketplace eliminates the need for agents and brokers to sit through hours of sales pitches with vendors and allows them the opportunity to research products and vendors on their own time, and compare products and services in one convenient online location.

Shopping made easy

Customers can shop by category or by vendor. Products include marketing services, productivity tools, mobile apps, e-learning opportunities, analytics tools, and more. Product pages include detailed descriptions and specifications, reviews from other users, and more.

“With the launch of Metrolist Marketplace, we are accelerating our business to the next level, becoming increasingly aware of all of the tools utilized by today’s busy real estate professionals, and making them available alongside our MLS services,” said James T. Wanzeck, Metrolist’s board chair.

There are many third-party vendors that utilize integration with MLS data, streamlining the purchase process for customers.

Ordering is easy, and Metrolist has ensured that security and privacy is a top priority, never selling personal information to others or sharing credit card information.

“We’re excited about the service choices available in Metrolist Marketplace,” said Kevin Best, sales manager for Metrolist. “In addition to providing our essential MLS services, we can do a better job of helping our customers find the right technology solutions for how they do business, making them more efficient and growing their businesses.”

New vendors, products and services will continuously be added based on customer input and feedback.

25 vendors already on board

Metrolist Marketplace currently includes nearly 25 vendors with almost 100 products today. Many more vendors and products will be added into Marketplace in the coming weeks and months. Some of the current products are available are offered exclusively through Metrolist Marketplace. For example, BuildFax and Goomzee, aren’t available to Colorado real estate professionals except through Metrolist Marketplace. BuildFax is a one-stop shop for national building, repair and remodel permit history. BuildFax is available for less than $5 per month and is discounted if someone purchase a year’s subscription. Goomzee is a smartphone app that offers MLS searching anytime, anywhere. Users can do a location search, search nearby, see photos, showing info and more. Goomzee is available for less than $10 per month.

Metrolist is going to let the marketplace speak about the quality of the vendors and products we offer. Similar to Amazon.com, and other online sites, it is including a  review system – if customers really like a product, or if they don’t, they can give it a review. Other customers can then use their peer reviews to help make their purchase decision.

If a vendor wishes to become listed on Metrolist Marketplace, there is a link on the site’s home that ask:  “How Do I Become a Metrolist Approved Vendor?” That will take you to this page:  http://marketplace.metrolist.com/Metrolist-Approved-Vendor Vendors can find answers to most of their questions there, along with instructions to start the process and contact information.

Contact John Rebchook at JRCHOOK@gmail.com

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