You have likely seen an article or two about how the national and local housing markets are beginning to cool off. This New York Times article is a particularly good one to read, as it focuses on Denver’s market as well as national trends, and it gets the bulk of the details right.
It is important to know that the market always cools off around this time of year, but is this year any different? Some signs point to yes. There are more homes for sale in the metro area than at any point in the last four years, and we are starting to see more price reductions, longer days on market, fewer showings, and less bidding wars than we did at the same time in years past. Sale prices are down about 5% from the peak of the summer. For the last 5 years or so we’ve been in an incredibly strong seller’s market, and, though prices are still up more than 10% year over year, buyers are starting to feel a bit more relief.
The data suggests that, barring something calamitous happening to the economy, prices will still continue to increase annually, though the rate of those annual increases will be more modest than in years past. Interest rates are still historically very low, so it is still a great time to lock in a historically low rate, but rates have been rising and will continue to do so for the foreseeable future. More people are moving here than are leaving here, though the rate of net inflow is slowing as housing prices continue to increase faster here than in much of the rest of the country.
So if you’ve been renting and holding off on buying a place or have been thinking about selling your house and upgrading to a new one, many data points are coming together to indicate this might be a very good time to make your move. If you’re a seller, it is still a great time to sell, and you should still expect to fare very well from your sale–but things may take a little longer, and the final sale price may not be what it would have been in the peak of the summer.
Do you have questions? Whatever your goals are and whatever your timeline is, our award-winning team stands at the ready to expertly guide you through the process of selling and/or purchasing a Denver area home. We would love to meet with you to discuss your unique situation, and we look forward to being of service to you. Contact us today to schedule a free consultation.