Is the Denver housing market beginning to cool?
The Denver real estate market appears to be showing signs of slowing down. In June of this past year real estate analytics firm, CoreLogic ,released a report that said Denver home prices were 10% higher than what is considered a sustainable level. They stated that household income was not rising at a rate commensurate with the rise in home values and thus a market slowdown was inevitable. (As an example, Denver median household income rose 4.8% from 2016 to 2017 while home values rose close to 10%.) Corelogic was not clear when a slowdown would happen.
In May and June of this year home prices reached record highs. Since then, prices have fallen 4.9 percent. This is not unusual and follows a normal yearly pattern. What’s not normal? Sales of single family homes priced over $500,000 dropping 33 percent from August to September, which is what happened in 2018.
The number of homes for sale in the residential market in September was up a significant 16.10 percent year over year, but the number of sold listings in the residential market decreased by 28.9% compared to the previous month, and was down 20.2% percent from September. 2017. Year to date, there has been a 3.04% decline in total sales compared with 2017.
More signs of cooling can be seen with months of inventory increasing to 2.33 months for single-family homes compared to 1.68 months last month. That is the largest single month inventory increase in the last 20 years.
The year to date average sold price in the Denver metro is up a robust 9.2%. The question that many are beginning to ask though is if the market will continue in that direction or if we are going to see home prices beginning to plateau? If you have been waiting to sell your home, it may be time. If you are interested in finding out more about the market, getting a free Market Analysis of your home or getting some expert advice on getting your home ready to sell, give us a call. We would love the opportunity to earn your business! As always, we would love to help you home!