All data taken from ReColorado, on August 15, 2019. Denver, Colorado.Eight County Denver Metro Area Current Trends through July 2019
Three Trends in Today’s Market
- The Denver housing market has reached record levels in pricing and is slowing down in appreciation.
- The 2019 data is showing some fragileness in upcoming trends in housing for Denver. Properties going under contract are slowing down the last two months. Under contracts is a leading indicator of future sales and slower appreciation.
- Investment opportunities in Denver single family housing market will offer less upside than the previous 5 years, but most certainly are still a bargain compared to renting with low interest rates.
The housing market’s appreciation of the past six years has turned to near euphoria, at least based on the performance of the sold data from 2013 to 2019, as further evidence is pointing towards a gradual slowing down of the market. The 8-10% appreciation is un-sustainable and we are beginning to see signs of a more normalization of the Denver real estate market moving forward for the balance of this year and into 2020.
- Can the Denver housing market sustain 2% increases in sales year over year for another 5 years?
- Will Denver housing prices at a risk of reducing?
- Will the average price of a single-family home rise approximately 2.6% by next July like it did the last 12 months?
The Denver market continues a strong position for sellers as of today and is still one of the best reasons to consider Denver real estate as a solid investment. The opportunity for appreciation since inventory levels have increased is still occurring, albeit at lower levels. We would predict inventory levels to rise over the next 12 months at another 20% from approximately 9000 homes on the market today to approximately 10,500 homes 12 months from now, as the buyer pool is shrinking
Inventory Trends Drive Sales
- Single Family home inventory is 16.05% higher than July of 2018.
- Single Family homes Days on the Market is 28 days on the market.
- Single Family average price of $488,000 for the month of July is 3.8% higher than July of 2018.
- The increase in single family inventory has slowed the 2019 Denver real estate market sales especially in the suburbs and outlying areas of The Denver Metro area.
- As single family inventory rises sales will slow down and appreciation will be 2-3% per year and some upper priced neighborhoods could see zero appreciation or correction of pricing for the balance of 2019 into 2020.
- Denver will not experience a housing bubble for the balance of 2019. Corrections to some sub areas in suburban or outlying markets could occur.
- The increase in the amount of inventory will slow prices, but the recent reduction in interest rates will bring buyers to the market causing prices to stabilize to a slow growth model.
- Know the numbers of sales and prices in the neighborhoods you are searching for homes.
- Become the most attractive buyer by being pre-approved for your loan.
- Study the trends of the price range you are buying within to make the best deal possible for you.
- Improve your housing information on all Online sites as buyers are looking to Realtor.com, Zillow and Trulia.
- Make your home sparkle from the street throughout the entire home.
- Know the price trends for your home. Overpricing is a mistake in today’s market.
What should Buyers do in today’s market?
What should Sellers do in today’s market?