Sometimes I fear that since I sell homes for a living, people won’t believe me and my take on the real estate market. That somehow I’m twisting the numbers or spinning it to encourage people to sell or buy. (Pssst… little secret… I don’t because I can help people buy or sell, so it doesn’t matter to me. I just care about YOU.) So, in the spirit of one-degree-removed believability, here is a market update from a local Title company rep who has been in the business for decades, Jill Cox. You can also see the raw data for yourself here.
According to the Bible and The Byrds’ 1965 hit song, to everything there is a season. In the Denver metro area, the real estate season is usually busiest from March through September. This year, you could say we’ve been turn, turn, turning from an extremely fast-paced market to a slower moving, healthier one.
There have been changes, but we have not shifted to a buyer’s market. Let me repeat that. We have not shifted to a buyer’s market. Sellers still hold the upper hand in the 11-county metro area. We ended September with 2.04 months of single-family inventory and 2.12 months of condos for sale. Anything under five months is considered a seller’s market. There are two areas where buyers have a little more power: condos priced between $750,000 and $999,999 and the singlefamily homes priced over $1 million.
Our rate of appreciation has slowed, but it has not reversed. Again, that is because we are not in a buyer’s market. The average sold price was up 6.06 percent compared to last September and 2.52 percent higher year to date.
Don’t get me wrong, we have been seeing changes. The number of price reductions has gone up. The spread between the list price and the sold price has widened. And the average days on market went up 6.45 percent month over month. Year to date, the average was up 25 percent from 24 days to 30.
Moving into our fourth quarter, agents may get a quicker sale by looking at the comparable homes solds in the last six months and then pricing under them. Even then, it’s smart to advise sellers that the last time they had this much competition in September was in 2013. Let them know they may be getting a contingent offer and buyers will probably ask – and expect – them to take care of inspection objection items.
But don’t forget to tell buyers that we are not in a buyer’s market. Not yet anyway, but the seasons keep turning.
~Jill Schafer, Chair of the DMAR Market Trends Committee and Denver real estate agent
DMAR Market Trends, October 20192019 Copyright All rights reserved to Denver Metro Association of REALTORS.