What will the Denver Real Estate market do as we head into fall and winter of 2016? I write a blog post about the market with the change of each season since the Denver market has become so seasonal. I've heard lots of talk around my office of how slow the market is right now and when we hear this, it's easy to freak out and think the market is slowing and perhaps a bubble is about to burst. But we have to remember that for the past four years, this exact same slow down has occurred in August and September and by next spring, the craziness we have gotten used to will return. To better understand the market, let's look at these very informative numbers courtesy Megan Aller with Land Title here in Denver.
As you can see, the number of active listings peaks in August while the number of solds and under contracts begins it's gradual decline until the new year arrives. For multiple reasons, buyers tend to stop shopping this time of year and by the time they are ready to start again, typically when fall arrives and the weather cools off, the active inventory has fallen to extremely low levels leaving little for buyers to choose from. From the next graph, you can see the odds of selling are at their lowest around September. The historical average is around 20% though so these numbers are still remarkable.
So while the market isn't as ideal to be a seller, it's still a great time to sell as long as you are priced correctly. It's important to price a home at market price, not above to test the market. If priced too high, you can expect to have to take a price reduction and sell at a much more discounted price.
If you are looking to buy, then now is the time to act. From the graph below, you can see the pricing trends are almost identical from January 2011. Prices bottom out each yearin October and November, meaning these homes went under contract in late August and September. So with inventory at it's peak and prices on the way down for the year, now is the time to act for buyers.
The other question that of course pops up this time of year is if we are headed for a bubble. Since these prices continue to rise, it's a good question. All the experts I've consulted have no concerns about a bubble luckily. The reason for this is the continued demand with such low inventory. While builders are building as fast as they can, there is no way to keep up with the migration to Denver and until people stop moving here, we shouldn't see a slow down anytime soon.
As you can see, it's still a great time to take advantage of the Denver Real Estate Market. If you'd like to discuss your options further, please don't hesitate to let us know.
Mic Ortega
303-903-3734
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