August stats show a stabilizing Denver area housing market, but it’s not normal.
A balanced market between buyers and sellers should have about 6 months supply of homes for sale at all times. We’re still under 2 months supply. This demonstrates a strong seller’s market. But prices are increasing at a slower rate, so what’s happening?
Well, as supply has been low and demand has been high since the recession we’ve seen double-digit appreciation year over year — which is completely unstable and unsustainable. The prices have risen so far so fast that buyer fatigue is setting in, and regardless of how low the supply and how hight the demand, we’re starting to reach a bit of an affordability ceiling and buyers are simply deciding not to purchase homes at alarmingly high prices.
We are seeing more sellers outpacing the market and having to reduce their price to find the market than we have in a decade. Prices are still increasing, but not at the rate they used to, but sellers haven’t caught onto that yet.
So, is it a good time to buy or a good time to sell? Actually, it’s both. Interest rates are near all-time lows and prices are at historic highs AND demand is still high. So, if you’re in the mood to move, you’ll be able to sell high; but you’ll still have to pay a pretty high premium to buy any Denver area home, however you’ll enjoy low interest rates and a few more listings to choose from than you’ve seen the last 6 years. It’s kind of, almost, a win-win.