In the national, and local news, there is increasing talk about a market slowdown. Not only is there some fear that a recession is on the way, but also comments are being made that we are in, or heading into a buyers market. Well, there is no way for me to predict whether a recession is on the way, but I can speak to our local housing market here in Colorado. “Local” is a key word here, because I believe that in “some” areas of Denver, things are slowing down a bit, but not in all areas. Furthermore, though things may slowing down, or normalizing, they are far from being a “buyers market”
According to the Denver Metro Market Trends Report that was published in November 2019, the average days on market sit at about 33 days. That is a 25% increase from last year at the same time. Of the closed transactions in October, 40% of homes did make some kind of price reduction. The average sold price for October of 2019 was up 1.96% from a year ago. Condos were up 6.95% year over year.
Month over month, the average sales price rose 1.22% to $486,390 in October. The active inventory was down 7.85%. This is a bit odd for the fall, when we typically see a slowdown in the market. In and around Golden, we are seeing .72 months of housing supply, which is just over 2 months. For us to enter into a true buyers market, we would need more than 6 months of supply. As of now, we are far from a buyers market in and around Golden.
It is true, we are seeing that some neighborhoods, and certain types of homes are taking longer to sell than others. Certain parts of Denver are slowing and homes are taking longer to sell, but it is difficult to quantify a slowdown on the whole. Prices are still rising, though at a slower rate than in previous years. It really depends on what you have, and where you have it. Price reductions are more common, as sellers typically are still pricing high and then having to adjust based on demand over time.
What I am seeing personally is that it depends on your neighborhood, your finishes, your layout, the condition of your home, and your price! If your home is in top condition, priced at value, and is in a desirable location, it will still sell relatively fast. For example, I recently had a ranch listing in Golden on 455 Wyoming Circle, listed at $1,250,000. My home had multiple offers, went under contract after 3 days and sold for 1,280,000. Another ranch home on 473 Wyoming Circle also went under contract in 5 days and sold for $1,130,000. Another smaller ranch on Wyoming Circle went under contract in 3 weeks and closed for $645,000. Yet on the same street, there is a listing that has been on the market over 2 1/2 months. This particular home is a two story, and is not in top condition. So this one home can bring up the “days on market” average for the whole neighborhood, but it has more to do with that house, than it does for the neighborhood as a whole.
So, its most important as a buyer or seller, to really scrutinize your specific neighborhood to find out what the market is doing where you are. You could be in a hot market, or a cooler market depending on your specific home, price, and street. Yet, on the whole, we are still not in a buyers market. Sellers still have sway, but must be wise in how they price their homes. It is still possible to over price, and see your home sit for longer than it should.
For more information on the housing market in your neighborhood, or for a specific evaluation of your home, feel free to reach out to me at the Fox Group. We would be happy to do a free home consultation for you.