Welcome to the August edition of the 2015 Denver Real Estate Market Newsletter.
WILL THE REAL ESTATE MARKET SHIFT?
YES, YES, YES! The real estate market is constantly in a state of flux, changing and shifting! There are both seasonal shifts throughout the year as well as frequent changes to long term trends. Regardless of the time of year or what you hear in the news about the real estate market, there are opportunities for buyers and sellers alike.
SEASONAL SHIFTS IN THE REAL ESTATE MARKET
Real estate markets typically heat up in April and May; the doldrums of winter have come to an end, daylight hours increase, temperatures warm and lawns, gardens, and trees blossom. The steep rise in the line chart below represents the acceleration in the number of homes being listed for sale in the April/May time frame.
The number of homes listed for sale (Inventory) peaks in July/August. Inventories then begin their seasonal decline as fewer new homes are listed for sale and those homes already on the market are sold, just before kids head back to school. Mari (7th grade) and Renee (5th grade) were excited to be back in school after a fantastic summer vacation.
The slowest period of the year is during the months of November and December. There are fewer real estate transactions during these months as buyers and sellers settle in for the winter and begin to prepare for Christmas and the holiday season. Sellers who find themselves still on the market during the holidays often choose to take their homes off the market, further reducing the inventory, then re-list in spring.
Even though the market slows in November/December, there are still 2,000+ homes sold each month. People always have a need to move, regardless of the time of year whether it’s a Buyer’s Market or Seller’s Market. The reasons are numerous and include job changes, corporate relocations, growing families in need of more space, changes in family status (marriage or divorce), etc.
There are opportunities for both buyers and sellers in all real estate markets. The pros/cons of buying and selling during the peak summer season (March through August):
- Buyer Advantage: Increased inventory of homes for sale means more home choices for home buyers.
- Buyer Disadvantage: Home prices typically increase during the peak summer season.
- Buyer Disadvantage: With more buyers there is more buyer competition and a greater possibility of ending up in a bidding war.
- Seller Advantage: Homes typically sell for a higher price during periods of strong buyer demand.
- Seller Disadvantage: More homes for sale means buyers have more options. Sellers who don’t prepare their homes to sell will lose out if there is a similar home nearby that’s in good condition, shows well and is priced right.
The pros and cons of buying or selling during the off-peak season (September through February):
- Buyer Advantage: Home prices are typically lower during the off-peak season (refer to Average Sold Price chart below).
- Buyer Advantage: Sellers are typically more motivated and therefore more willing to negotiate when there are fewer competing buyers in the market.
- Buyer Advantage: With less competition for homes for sale, bidding wars between buyers are less likely to happen.
- Buyer Disadvantage:Fewer homes for sale equates to fewer homes to choose from.
- Seller Advantage: Buyers are motivated to buy; in other words, there aren’t a lot of Lookie-loos at this time of year.
- Seller Advantage: Since there are fewer homes to choose from, buyers may be willing to accept a condition or location they wouldn’t have otherwise accepted in a higher inventory market.
Long Term Real Estate Trends
To be continued…. Be sure to check in next month as we look at the longer term trends in Denver’s real estate market.
The real estate market is constantly changing and shifting. Low interest rates and continued high buyer demand have fueled both buyer and seller activity in 2015. In my view, 2015 has been a win-win for buyers and sellers. Buyers have benefited with increased affordability as a result of low interest rates. Sellers win with high buyer demand which has resulted in higher sales prices and shorter days on market.
Data Geeks – Need More Real Estate Data?
Use this link to view the Denver Metro Area real estate statistics (15 pages). Single family highlights, comparing July 2015 to July 2014, are as follows:
- Days on Market has decreased 26.0% to just 20 days
- Active Listings or the number of homes for sale has decreased 6.0%
- Average Sale Price has increased 10.0% to $409,669
Are you a data geek like I am? Would you like to see more 2014 real estate data for the city in which you reside? Use the links below:
- Denver Metro Area (15 pages)
- Castle Pines
- Castle Rock
- Greenwood Village
- Highlands Ranch
- Lone Tree
Paul’s Facebook Page
July 2015 Real Estate Market Trends
Denver Real Estate Market Trends
Real Estate News
Lower inventory of homes for sale fuels Denver’s hot housing market Read More
Denver homes selling faster than anywhere else in the country Read More
Housing market shines for home builders Read More
More millennials living with parents now than during the recession Read More
Denver third-best city for retirees in US Read More
Denver’s the best place to live in the West Read More
Colorado foreclosures up 2% in July Read More
Rents up 13% in metro Denver Read More
Denver rents are 14th-highest in country Read More
Colorado unemployment rate dips to 4.3% Read More
Metro Denver unemployment rate drops below 4% Read More
Denver rated America’s best place for business Read More
14 Colorado companies make Inc’s top 500 fastest-growing companies list Read More
Topgolf golf entertainment complex opens in Centennial Read More
C-470 to see toll lanes as part of $269 million expansion plan Read More
RTD awards $140M contract to extend southeast light-rail line Read More
California burger chain The Melt opens its first store in Colorado at Park Meadows Mall Read More
Colorado schools second only to Massachusetts Read More
Denver and CO Springs among 20 most educated cities in US Read More
Corpse flower brought big crowds to Denver Botanic Gardens Read More
THANK YOU FOR YOUR BUSINESS AND REFERRALS!
If you or someone you know is thinking about buying or selling a home, please let me know. It would be my pleasure to work with you or your referral. My commitment to my clients is to treat them with the utmost care as they work towards buying or selling a home. Referrals are the core of my business and are always appreciated.
Please call me with your real estate questions. I’m always happy to help you navigate through this constantly changing real estate market!