The Market HAS Shifted

In last Friday's Denver Business Journal was a great story about the sale of homes owned by banks or REO homes. Here are 4 AMAZING stats that you must know about--

· On REO homes they sold at a premium of 3% last month, meaning that they sold for on average 3% ABOVE list price.
· For REOs sold under $185,000, this premium increased to 10.7% and they sold in less than 5 days. WOW!
· Gary Bauer another analyst said that there is less than 3 DAYS supply of homes priced under $100k!
· Average sales price of the smallest homes (under 910 square feet) have increased 14% this year.

If you are just reading or watching the national news about real estate you are about to get a very rude awakening. The market for lower priced homes under $250k here in Denver is quickly recovering. The market has shifted in the last 6 months.

For example, from the 2nd statistic, a REO property listed for $165,000 sold for $182,655 on average in August! WOW!

What does this mean for you? If you are buying a home under $200,000 offering less than full price is foolish and a waste of your time. Second, if you need a down payment assistance loan, buying a home just got tougher because of their rules. Third, you must move quickly when finding a home. Fourth, act now and get pre-approved for your mortgage.