From time to time it is instructive to look at an area from a more “micro” perspective.  If you have read some of my posts then you know I really do not like “Denver” statistics because they so often hide neighborhood data on which consumers really need to be making decisions.

So, looking at 2008 vs. 2009 Highlands Ranch activity with the broad brush, we find a reduction in total sales 2008-2009 from 1592 to 1359 (down 15%) with average and median prices remaining pretty constant for both years at $341,000 and $301,000 respectively.  The average price per square foot dropped from $158psf to $155psf (down 2%).  Lets take a look and see if the $350,000 to $450,000 segment performed the same.

This segment represents about 20% of the homes sold in HR for both years.  The average and median prices were both down a relatively insignificant 1% but the price per square foot dropped by 5%; more than twice the rate of the market taken as a whole.

There must be some meaning here.

With relatively level average and median prices, the reduced PSF figure for the overall HR market indicates deterioration in that market with buyers able to purchase larger homes for the same price as the prior year.  With a doubling of that PSF figure for the $350-$450 segment, we can conclude that this price range is not doing as well as the overall HR market.  That should make for better opportunities for buyers.

I am curious about your specific experiences so leave a comment or give me a call.

I will address market segments in HR and in other markets in future posts.

Russ Murray               303-721-1100, ext. 1        russ@buyerbroker-denver.com