The August market statistics are in, and as a member of the Denver Association of Realtors®, one of my insights published in this month’s report states:
Sellers who missed the seasonal summer peak had to adjust and buyers are starting to negotiate, which is resulting in sellers becoming more realistic with pricing.
Falling average and median residential sold prices for the month of August confirm this observation with a decrease of 2.75% and 1.3% respectively. If you’re in the market to buy, now may be the time to clinch a lower-than-asking-price deal. Keep in mind that even though prices dropped slightly over last month, the average sold price of $434,478 is still trending upward year-over-year by more than 8%.
New condo development sales are starting to open up creating an uptick in active inventory with nearly 5% more listings than last month and 17% more compared to the same period last year. But, with an increase of over 10% in average sold price from August 2016, buyers aren’t snatching them up as quickly as in the past — at this time a year ago, condos were selling a whole 12 days faster.
Looking forward, a glimpse into the future health of the Denver housing market can be provided by anticipating events that will most definitely affect the local economy, as I noted in the DMAR report:
Multiple businesses are still looking at Denver to relocate their headquarters including Vertafore, Xero, DaVita, RLH Corporation, Whole Foods Market, and BP Lower 48. This will continue to strengthen not only Denver’s job market, but its housing market as well.
As these companies settle in and attract new talent, an influx of fresh Denver transplants is likely, and we’ll experience the effects of supply and demand on the housing market firsthand. If builders and sellers can’t stay apace with incoming demand, the price of existing inventory will continue to rise. As long as salaries rise proportionally, which is highly probably any time large or growing companies set up shop, there’s no reason to fear a housing bubble.
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Note: All data, unless otherwise stated, has been sourced from the September Denver Metro Real Estate Market Trends Report compiled by the Denver Metro Association of Realtors and includes 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.