The Denver Market Shows Signs of Slowing
July'sDenver real estatenumbers show a continued balancing of the market - an incremental slow-down, if you will. Last month, we reported our prediction that this slowing market was the product of a seasonal shift. In other words, residential real estate busy season began early, so it was ending early too. œIt makes sense, as we look at the numbers [...] We may be seeing a seasonal shift, explained Megan Aller fromLand Title Guarantee Company.
Market Report Stats fromDoug Yetman
Multiple industry leaders agree with this assessment, but some believe this slow down is far more than seasonal. According toDMAR's Steve Danyliw, œ [...] an extreme seller's market may be behind us. Those of the market slowdown-mind predict a continued slowdown with less competition for buyers and home appreciation rates closer to historical averages (under 6% yearly).
Is It a Seasonal Shift or a Sustained Balancing of the Market?
So, has the summer slowdown just come a bit early this year, or is Denver heading toward a more balanced market with more power in the hands of Mile High City buyers? May and June both saw increases in inventory - the most recent stat showed a 5% increase over this time last year. At the same time, the number of homes sold decreased by 11%. Both of these changes favor buyers.
Though summer shifts the market a bit closer to buyers' corners every year, the marked year over year variations tend to indicate that some type of change is in store. We won't pretend to know whether this shift in favor of buyers is permanent or if it is simply a seasonal shift. But, keep your eye on early autumn numbers, when the market should swing back in favor of sellers. If inventory reduces again and the number of sold homes bolsters (comparably to the same time in 2017), we may be in the midst of a seasonal shift. If, however, we see more of what we've seen this summer, a continued market slowdown may be on the horizon.
Denver's Strong Real Estate Market
One thing to keep in mind is that home values continue to appreciate at impressive rates. The cost of an average single family home at $539,934 shows an almost 9% increase from last summer. It's clear that just because our market is experiencing a change, we're not toppling out of a bursted bubble. In fact, a balancing market will improve issues like exponentially growing issues in affordability and lack of inventory. Denver's real estate market remains strong as we head into July of 2018.
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