Take a look at this 2019 housing market forecast from 5280 Magazine, and Denver Metro Association of Realtors.
Have you been putting off buying a home because of the competitive market we’ve been experiencing here in Denver? 2019 may be the year for you to buy your dream home! According to numbers from the Denver Metro Association of Realtors, the housing market has cooled, so much in some suburbs, making the luxury sector become a buyer’s market. This is what happens when inventory exceeds six months of supply.
According to the DMAR Market Trends December report, overall housing inventory in November 2018 was 46.76 percent higher than in November 2017. “Currently, in the luxury market [anything priced above $1 million], we’re seeing 7.22 months of inventory,” says Jill Schafer, DMAR Market Trends committee chair and an agent with Kentwood Cherry Creek. Schafer says “it’s becoming harder to sell a home over $1 million” in the suburbs.
The same cannot be said for homes priced over $1 million in central Denver. “To be in the central city—Denver’s premier neighborhoods—people know they still have to pay a premium,” Schafer says.
Outside of those million dollar homes, the market has been slow coming into this new year. DMAR shows a 17.27 percent drop in sales between October 2018 and November 2018, making this the lowest number of transactions a November has seen in the last three years. Schafer says a seasonal slowdown is typical, but “we’re still higher year over year” in terms of home prices. The average sold price of a single-family home was $505,990 in November 2018, up 5.41 percent from November 2017.
“I expect to see prices continue to go up,” Schafer says, “just not crazy double digits. I think we’ll be in a healthier 6 to 8 percent range.”
According to Schafer, this re balancing is going to have a positive impact on real-estate transactions. Recently, some sellers have even accepted contingent contracts! “Anecdotally, I would say that buyers are less panicked,” she says. “Some of the crazy stuff we’ve seen is calming down. Sellers are still getting good prices, but buyers aren’t feeling like they have to put all their chips on the table.”
Even in the midst of a cool down, Denver’s housing market still promises to keep us on our toes.
As always, if you are thinking of buying or selling in this new year, give us a call!