Denver Metro Real Estate Market Cooling
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Now unless you've been living under a rock, inside a cave near the center of the earth, you know that the real estate market here in Denver, Colorado is hot, hot, hot! But what you may not know is that most recent home sale reports show a slight cooling off with the average single family home price decreasing by 2.75% from last month to just under $484,000.
This cooling has caused all sorts of chatter especially among those skeptics concerned about a looming real estate bubble.
If we go back and look at 2016 during the same time period from July to August, you will notice a very similar trend. The average home price went from just under $458,000 to $446,000 for a 2.65% decrease. And what's even more noteworthy is that even with the decrease in average home price, prices are still up 8% over last year.
That's still an impressive growth rate.
So it's important to acknowledge that this cooling off that everyone's so hyped about is more likely driven by a very typical seasonal trend. So don't be fooled or mislead by the rumors of a cooling market. I like to think of it as the temperature going from 110 to 105 degrees. That my friends means it's ♪ Hot in, so hot in here ♪ -
So what does this mean for buyers and sellers going into the fall?
For buyers, fall has always been and will remain a great time of the year to get a good deal on a home. Although inventory is lower in the fall compared to spring, which means you have fewer homes to choose from, there are also fewer people competing for those homes.
So if you're one of those people who are getting outbid and burned out on your search this spring, you may just want to relaunch your search this fall. Or if you're hoping to be in a new home by next spring, it would be smart to start your search now as the money you could potentially save on both interest rate and price could far outweigh any early lease termination fees.
So what does this mean for sellers?
It means you should have sold your home months ago like I told you to. No, I'm just kidding. If you're a seller that needs to sell and buy, it's a pretty ideal position to be in because while your home may not sell at the absolute peak of the market, we're still in a high plateau with growth rates between eight and 10% over the last few years. So you'll still be able to get top dollar for your property.
Your home may stay on the market a bit longer, maybe a couple weeks compared to just a few days like we've seen recently, but you'll be grateful to have a bit more time to find the perfect home at a more favorable price.
Bottom line as we head into fall, the real estate market is following trend with a slight cooling. Take advantage of it and call me to make your next move. Thank you for listening. I'm your realtor Milena Joy. I know changing where you live, can change how you live.