While we couldn't have predicted the early season snow storms that came in October, we can predict that Denver real estate market is poised for a strong fourth quarter to wrap up 2019. Amid talk of an impending recession, the housing market remains healthy. Keep in mind that in three of the last five recessions, the housing market still reported yearly gains of at least 3.5% and in two of the last 5 recessions homes still increased over 6% in value. According to Nicole Rueth who leads the number one mortgage team in Colorado, œthe housing market will be the stability that carries us through the next recession.
Atypical October for the Denver Real Estate Market
Seasonal norms for this time of year would suggest a decline in both buyer and seller activity. As we predicted last month, low interest rates have actually re-invigorated buyer activity which is up 11.6% from this time last year. Inventory for detached homes in October was down 13% from the previous month and 18% from one year ago. Coupled with the uptick in buyer activity, this could make for an interesting fourth quarter for Denver's real estate market.
Buyer Take
Buyers that are searching in the Denver real estate market right now can feel good about getting the best interest rates available and enjoy the slowed pace of the market. Flash sales are down, meaning that homes that don't need a price reduction are sitting for roughly 14 days instead of flying off the shelf in the first weekend. The only downside is the lack of choices this time of year, although buyers should keep an eye out for new home incentives as builder's close out their books for 2019.
Seller Take
While competition is low and buyer's are eager to take advantage of the favorable housing affordability index numbers, seller's should still be prepared to see offers with sales contingencies and concession requests. Seller concessions were present in 50% of all closed transactions last month. A solid marketing plan and professional representation are still the key to getting your home sold quickly and for top dollar.
A Smart Investment
Another interesting number we'd like to point out is the rental vacancy rate which sits at 4.4%. A vacancy rate below 5% indicates an exceptionally strong rental market where rents are increasing. This is great news for Denver landlords and those thinking about becominglandlords. If you've ever been curious about investing, now is the time to learn before interest rates rise again. For a crash course on the basics of investing including how to select the right property, check out our free Live and Learn event on this topic on Tuesday November 19.
A special thank you to Liz Reyesfor starring in our Denver July Market Report video.
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