It’s no secret that the Denver market has been burning hot for years now. Experts have been questioning how long this burn would last and some are wondering if it’s come to an end.
According to the Denver Post, Denver and other markets saw a sales slump and an increase in inventory at the end of 2018. Data from ReColorado corroborates this showing just 4,526 sales in December 2018 compared to 5,426 in December 2017.
However, while the number of sales has slowed, the prices aren’t dropping. In December 2018 the average sale price according to ReColorado was $454,839 compared to $434,835 in December 2017. That’s a price increase of 4.39% in just a year.
Many real estate experts argue that the slump in sales is primarily due to the season and will bounce back as we approach the spring and summer seasons, traditionally busier seasons in Colorado Real Estate. However, we can’t ignore the decreased number of sales completely.
Increasing inventory will slowly shift the market to be more buyer-friendly, meaning the rising prices may cool and houses may stay on the market longer. It wouldn’t be surprising in 2019 to see houses no longer going under contract within 24 hours.
If the market does, in fact, cool down, it is likely that neighborhoods on the edge of the Metro Area, such as Broomfield and Arvada, will cool down faster than those more centrally located as the motivation to move to these areas will decrease.
It’s important to note that this potentially cooling is not a detriment to the Denver Area. It’s a natural flow of the market from being seller friendly to buyer friendly.
Prices are still up and if you’re looking to sell now’s a good time. Contact us today to start the process of selling your home.