Being a realtor I get a lot of questions about the market. Many of my buyers and sellers are very savvy and will watch the market closely. Lately, I have been getting the following questions and I have to say I can’t blame anyone.
- Is the Denver Housing Market Bubble Bursting?
- Is the Denver Housing Market Going to Crash?
- Why are Homes in Denver Staying on the Market Longer?
- Why are There Price Reductions all of a Sudden?
The Denver Housing Market – What We Are Seeing
Right now in the Denver housing market, it seems like we are seeing some changes. There are some homes staying on the market longer in some areas and price drops are happening.
We always see a slow down in July so honestly, I have been watching to see what happens and if it picks up again. I decided I would go into REColorado and look at some stats to see if what some people think is happening is really happening. Here is what I found, I will post images of the stats below so you can see too.
I chose Thornton to look at, as putting in Denver doesn’t really give us a clear picture from town to town. Choosing a relatively popular town and what that has seen growth year over year should give us an idea of what is happening.
Number of Listings
- July 2017 – 238
- July 2018 – 230
So we actually had fewer listings this year in Thornton over last July. Low inventory is still in play which will keep the market more competitive overall. Until we see an increase in listings buyers will still be competing with one another.
Days on Market
- July 2017 – 8
- July 2018 – 8
Days on market were equal in both July 2017 and July 2018. Like I said, we often see a slow down in July and August and the stats show that days on market didn’t increase or decrease from 2017 to 2018.
July 2017 – $377,629
July 2018 – $415,405
The average sales price increased from July 2017 to July 2018.
Do the Stats Show it All about the Denver Real Estate Market
So as you can see from above there really hasn’t been a whole lot of change in the market from last July to this July. This doesn’t mean nothing is changing because it does feel like changes are happening but what I think it does show is that the bubble isn’t bursting right now!
Here is what I think has happened. Sellers started to get a little greedy when it came to where they should list at. And hey, when you have seen the market explode, buyers submit offers $20,000 over and houses selling for way more, why wouldn’t you take that and then try to push it higher?
What this means for our market though is that we see price decreases. Then buyers sometimes won’t even look if they feel it is unreasonable so they sit on the market longer.
Buyers are also either getting priced out of the market or they have just had enough.
So I think a leveling off is a definite possibility but I don’t think we are about to see a crash or recession at this point. Believe me, we lost a house in the last recession and I don’t want to see any of my clients go through that.
I will be back in September looking at the August stats to see what is going on as we would usually expect to see the market start picking up again.
If you would like to chat more about what is going on in the Denver market! Reach out to me I would be happy to chat!