This was the first time since 2008 that Westlake had an average sales price over $180,000. Although we saw a 6.1% price increase over 2011, that doesn’t tell the complete story. This was also the first year in at least 6 years that the percentage of distressed home sales wasn’t at or over 40%. This year we saw the percentage of distressed home sales drop to 25%. Only 2 homes that sold this year were short sales. This contributed more to the price increase than the market itself did as distressed homes usually sell for well below market value.
Something else happened in Denver this year...inventory shortages. We saw 20 year lows in the number of homes for sale. In a strong market this alone would push sales prices up 3-5% or more, but probably contributed only 1-2% instead. This is a reminder that even though our local market is healing, the national economy is still very weak. I think 2013 will continue with moderate growth, low inventory, and a steady, sustainable pace for home sales.
Please remember to think of Tri-County Associates whenever you or anyone you know has real estate questions or needs. We’re always here to help, and we will always keep your best interests as our central focus.