Monica’s Monthly Minute- Denver Real Estate Market Update

Thank you so much to all who joined us
for our Client Appreciation BBQ!
We look forward to seeing you at our Christmas party! December 14th 3-7 PM
Watch Video Here
Real Estate News
Current state of the market
The market has increased inventory which is cooling down the overly heated market we have experienced for the past several years. The average rate of appreciation is very slowly returning to the long-term average price increase of 6% per year. By no means should sellers be alarmed. It is still a Seller’s Market, just not as strong as the past five years.
Inventory
Inventory levels of homes on the market are finally growing from historically low levels, especially for smaller homes. Inventory should have increased beginning 2013, but it is just now starting to increase (which tells us what a nutty market it was!) Home inventory on 7/1/19 was up nearly 25% from the prior year, and condo inventory is up nearly 60% (a majority of these being a part of the luxury market). All buyers are welcoming the increase. It is still a sellers’ market compared to a few years ago, but slightly better for buyers than it was in the past.
To put the inventory of homes for sale in better perspective from the past few years, take a look at the chart below. The solid purple line shows the number of properties on the market every month going back to January 2007. The dotted purple line shows the number of sales every month.
What you saw during the downturn between 2007 and 2010 was an astronomical number of properties for sale (over 35,000 at its height!) which caused a huge buyer’s market and a crash in prices. Starting around 2010 and picking up in 2011, the inventory began falling and the market became strong. Since 2012, there has been a dearth of properties on the market resulting in our strong seller’s market. This is exactly how markets are supposed to work, ebbing and flowing over time.
 Looking at this image above you can see a small but noticeable rise in the numbers of homes on the market. As a matter of fact, 5,449 houses and 2,413 condos (July 1, 2019) on the market are the highest numbers we have seen in years. We still have historically low inventory, but if the number of homes on the market continues to rise over time to the 15,000-17,000 mark, we will return to a balanced market.
Showings per Active Listing
The following graphic is a metric that Your Castle invented years ago which compares the average number of showings per listing per month. Basically, the higher the number, the stronger the real estate market. A higher number means there are either more showings per month, fewer listings on the market, or both. The opposite is also true. A lower number means either there are fewer showings per month, more listings, or both, which translates into a weaker market. As you can see, the light purple line is just below where we have been the past few years. This suggests a strong sales market, just not quite as strong as the past couple of years – for example, one offer on a property at a time in instead of five offers.
Putting this data together indicates that the market is a bit weaker than years past, but it is still strong. No one (no matter what they say!) knows for certain what will happen over the coming months and years but you can rest assured we will be tracking the Denver real estate market closely and reporting back to you every step of the way.
Please give me a call if you want to chat more about this. I am always happy to talk about our super exciting, ever-changing real estate market!
Buyers
A better market for buyers
Not only do we have more inventory of homes to pick from when searching for your new home, we have interest rates that continue to fall. Today’s interest rates are low, down about .90% from the beginning of the year. With a lower interest rate you can buy more home for the same monthly payment.
If you have been waiting for the prices to drop to start searching for your home, wait no longer. We are not expecting prices of entry level homes to drop. If you are purchasing a home over a million dollars then you may consider waiting, but most first time and even move-up buyers are not looking in that price range. The inventory of homes in lower price ranges is limited and the population is increasing with more demand for this limited inventory.
Fall and winter are great times to buy! Call me and I can go over your options to purchase.
Testimonial:
I’ve both bought and sold properties with Monica, and both experiences were wonderful! Monica is professional, knowledgeable, and truly puts her clients’ needs first. She suggested creative ways to negotiate contracts. She and her office manager, Maria, make a great team in meeting the needs of the  clients. I recommend Monica to anyone needing a realtor! We will definitely work with Monica for our next move.
  • Jenny, Denver CO
Thank you so much for all of your support of referrals and repeat business. I’m honored!
Thank you!
Monica Perez
303-912-3320
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