HOT OR NOT?
Is the Market Cooling off? Not really!
Even though Denver’s real estate market is cooling relative to last year, it’s still hot. That’s the message from the chair of the market trends committee of the Denver Metro Association of Realtors regarding DMAR’s latest prognosis on the Denver metro area’s real estate market.
DMAR recently released a report examining home sales data from 11 counties that encompass Denver, Boulder, and their suburbs. Year-over-year, the report found the number of homes sold in February decreased 10.9 percent and the median price of homes also decreased slightly, down 1.2 percent year-over-year. The Denver Post noted this was the first February-over-February drop in seven years, but DMAR says buyers and sellers shouldn’t put any stock in that observation.
The first six months of last year were just kind of an anomaly. The market was very busy and a great time to purchase or sell a home! It’s still a great market for making a real estate move.
High-demand neighborhoods like RiNo (River North), Sloan’s Lake, and Highland are still as competitive as ever. The market is cooling (relatively speaking) in the suburbs, but even that doesn’t mean much. In Denver’s highly competitive real estate market (the most competitive in the nation, according to Forbes), the market can stand to cool a little and still be quite hot. Sellers have an advantage across the non-luxury market for now. If you are buying a home for $750,000 or less you could run into some buyer competition.
Overall, homes priced for those in the non-luxury market are now selling at a median of 39 days on the market. That’s up 21% from the same time last year. This means buyers are gaining a little ground, but they’re still far from having the upper hand in this real estate market. Buyers need a savvy and experience real estate agent on their side when negotiating in a market like the one we’re currently in. When homes are selling quickly (less than 1-2 months on the market), sellers have the advantage—they can hold out for a better price. Sometimes the sellers could be coming up on a big move and have a need to sell. That’s when your agent does the best for you! Anything longer than 4-6 months on the market shifts the market advantage to buyers. Prices fall and buyers have more leverage to negotiate. Right now homes are still selling quickly in the Denver Area!
As I see it, we’re still in a strong seller’s market. I don’t think there is any real significant slow down in the suburbs. It’s slightly less active than it was last year and there are a few more homes on the market. Being prepared to buy is key in this kind of market. Meeting with a qualified lender and a knowledgeable agent can make all the difference!
Housing In Denver
Housing inventory on the Front Range is increasing relative to demand, contributing to the slowing market. DMAR’s March report found single-family home inventory increased 36 percent over last year and condo inventory increased 79 percent over last year. Nationwide, the report says Denver ranked sixth for the number of apartments added since last year (11,700).
But this isn’t serving to drive down the average price—that’s shown and actual increase, although less than one percent, across single-family and attached units.
So, if average price is your thermometer, Denver’s not cooling at all. As long as prices and home value is on the rise so is the Real Estate temperature in Denver!
Call me today to get started with your next real estate adventure! I have over 30 years of experience to put to work for you! Call or text me now 303-898-9000 or email me at Steve@stevejacobson.com