What’s happening in the Denver Real Estate market?
October saw Denver’s housing market shake off a rocky September and our marketplace looked like the train was back on track! Home inventory declined a bit, as did home sales, but average sales price rose as we head into our Holiday Season. Digging deeper into the numbers, we still see indicators of the current shifting market, even as October felt more like what we have seen over the last few years. The number of active homes for sale was down 3% month over month, but UP over 35% from this time last year.
There is some great news for Denver homeowners, potential sellers, and buyers! Home prices have appreciated over 8% year over year and we are on pace to finish out the year with close to double digit appreciation! Furthermore, while the market is shifting, much of the data on the national level points to continued strong growth in the housing market for many areas of the country, including Denver, over the next couple of years.
How does this affect buyer and sellers?
The Fed is looking to potentially raise RATES again next month. Why is this important? As rates rise, purchasing power is diminished. Typically, a .1-.25% rate increase may only increase a monthly payment by $20 to $50, but think of it this way. $50 a month for a home payment is roughly equal to $10,000 worth of home. This is not insignificant and could be the difference in one’s ability to afford the home they love. It is not the end all be all, but certainly something to consider. Combine that with current market conditions and it is, and will be, a great time to buy over the next several months. As we move into our winter sales cycle, remember the following:
- Any house on the market is likely a serious seller, not someone testing the market
- Typically, home sales prices decrease a bit during the winter, so you may be able to find a better deal
- Less competition on the buy side: smaller buyer pool, better chance to get your dream home
Stay the course. A well prepared, well staged, well marketed, and appropriately priced home will sell quickly. It’s not the wild west it has felt like for the last few years, but do not be lulled into thinking you’ve missed the boat. Home values are up over 8% year over and year and signs point to a strong marketplace in 2019. Perhaps your days on market will go up a bit, and perhaps you can’t refuse do to any repairs or give any concessions, but this is a small price to pay for the gains you’ve earned as a homeowner since 2013. So if you’re thinking of selling, fall/winter is a great time to do so.
Where Do We Go From Here?
Winter is coming! No, seriously, we just got another snowfall and Turkey Day is almost upon us. Enjoy the season! Read credible literature on the health of the market and do not be swayed if you are looking to buy or sell. It is, and will continue to be, a strong market.
Let me Repeat:
I closed with this last month, but it bears repeating:
Winter is coming! While the market may slow down a bit during the colder months, it is actually an IDEAL time to buy or sell a home. There typically is less competition in the marketplace, so each side is able to get great value! If you’re thinking of buying or selling a home, talk to a real estate professional. Are you planning to get started after the holidays? Great! Now is the time to do your homework done so you can hit the ground running come 2019.