The Denver housing market has experienced some changes and may be on track for a few more. Inventory levels are on the rise, seller asking prices are way up and homes are sitting on the market longer. But what do these changes mean to buyers and sellers in Denver? Are we leaving the seller friendly market and moving into something better suited to buyers?
“Shift”. The word is everywhere in the Denver real estate industry these days. There is a shift in the market, and everyone is trying to predict where it is taking us. Opinions vary widely on this point. Some see the change moving towards a more normalized market, where buyers have choices in the property they want and take more time in making a purchase.
Others see the shift being more radical, with hefty price drops and long listing periods on the horizon. Some are pointing to other areas of the country where these changes are playing out, but haven’t come to Denver.
There does appear to be a shift towards a buyer’s market, but we must keep the amount of change in perspective. In what is considered by most professionals a “normal” or balanced market, homes can take four to six months to sell. In the current market, even with the shift, homes are typically selling in under eight weeks. This combined with rising prices continues to keep us in a seller’s market.
Is the Market Crashing?
Are we facing another wave of foreclosures like we saw in 2008? While it may not be the same selling environment we have lived in over the past five years, it is doubtful we are heading towards a real estate Armageddon. In fact, in some areas and certain price ranges we are still seeing multiple offers from would be buyers. The shift we are seeing is a move towards a more normalized market, where buyers and sellers are on an even playing field.
Prices Continue Up
The increase of inventory coming to the marker would suggest price increases have slowed, or even started to pull back. But this isn’t necessarily true. As we head into another selling season, the median asking price has already jumped 8.4% from December to January. If we stay on the established trend, sale prices will soon begin to move upward, following the increased asking prices from sellers.
What we have seen in the first two months of 2019 is an early push into the real estate selling season. Buyers sensing the uptick in both price and interest rates are out early in the year. This early activity may mean less activity in early summer, as buyers take advantage of current low interest rates and higher inventories.