September 2018 Real Estate Market Update

     

    The Denver Metro real estate market remains red hot despite concerns amongst many that our market has hit a peak.

    Our current month’s of inventory, which is the amount of time it would take all current active listings to sell if no more new listings were put on the market, is now just under 2 months in the Denver Metro.  A balanced real estate market will have 4-6 months of inventory depending on the market.   Anything under 4 months of inventory will result in increasing home values. Thus, values will continue to increase in our market.

    The Average Days on Market, which is the amount of time an average listing stays active on the market prior to selling, is 23 days. In August of 2014, our average days on market were 24, and in August of 2017, they were 21.  In other words, not much has changed in the past 4 years.

    Homes under the 350k range are selling very quickly due to affordability. Homes for sale in areas such as Thornton, Aurora, and Green Valley Ranch are selling faster due to lower prices in those areas.   In general, properties are appreciating a higher rate in those areas due to greater demand at the lower price points.

    The average home sales price in the Denver Metro and surrounding areas has increased by 44% since August of 2014.

    The average home sales price in the Denver Metro and surround areas has increase by 9.1% from August 2017 to August 2018

    Many homes are staying on the market for 1-2 weeks versus 2-3 days, making it easier for would be home buyers to get offers accepted with less competition.

     

    My Forecast For Our Market

    The Denver Metro real estate market is still appreciating.   The market has slowed since mid-July of this year, but this is normal as we head into the school year.  The Denver market will have another strong Spring/Summer with values estimated to increase by approximately 7% between now and September of 2019.

    I believe that market appreciation will slow down as we head into Fall of 2019.  At this point, our months of inventory will be in the 2-3 month range.  We will still be in a seller’s market at that time with appreciation beginning to slow.

    I don’t see a market down turn for at least 3-5 years, if not longer.  We are going to level off as we head into 2020 and hold steady for quite some time.  Appreciation should still be in the 4-6% percent range annually as we head into 2020.

     

    What Does This Mean For You?

    If you are thinking about buying a home, you should purchase sooner rather than later. A house that is priced at $350,000 today will be worth approximately 7% more a year from now putting its value at approximately $375,000 in September of 2019.  Not only will a buyer be paying the extra $25,000 in this scenario, they won’t be getting the $25,000 of equity they would have.  The cost of waiting in this example will be $50,000.   This doesn’t take into consideration the potential increase in interest rates, which would make one’s mortgage payment higher.

    If you currently own a home, investment properties, or are thinking about selling, you have no reason to panic. Our market is still very strong and we will continue to have solid appreciation for quite some time.

    If you are thinking about upsizing or downsizing, now is a great time to do so.  It is much easier to get offers accepted with contingencies at this time. We are seeing less multiple offer situations which means you won’t have to compete with as many home buyers who are making offers WITHOUT contingencies.

     

    Below, you will find graphs with market statistics.  As always, if I can be of service to you, your friends, or family, call me anytime.  I am always here to help anyone in the market to buy or sell a home. 

     

    Thinking about selling your home?  Click HERE

    Thinking about buying a home?  Click HERE

    Want to know what your home is worth?  Click HERE

    Or call me, James Crocker, at 720-235-7388

     

     

     

     

     

    Thinking about selling your home?  Click HERE

    Thinking about buying a home?  Click HERE

    Want to know what your home is worth?  Click HERE

    Or call me, James Crocker, at 720-235-7388

     

     

     

     

     

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