Denver Metro Real Estate Market Update
2019 Quarter 2
The numbers for 2019 Q2 are in, and the trend we identified after Quarter 1 continues. Learn more in our most recent Market Update.
What are the numbers?
Over 9,000 active listings with more expected
Pending Sales up 17.9%
Sales units down 3% YOY
Average sales price up 2% YOY
DOM 25 days
Interest Rates can be found below 4%
Putting it all together
Things may be cooling down.
It’s been a hot market for as long as most of us can remember, and it is definitely still a hot market. However, the data suggests that maybe things are starting to cool down a little bit. We said in our Q1 update that “our rate of increase has decreased,” and that trend has continued. In Q1, it was the YTD sales units being down 7% and DOM being up 2% that led us to make that conclusion.
At the end of Q2, those numbers have improved - instead of sales units being down 7%, they are down just 3% YOY. Taken in a vacuum, that will sound like an improvement and that things are heading back towards the uber-competitive, multiple-offer days of 2016 & 2017.
When you consider that sellers are now getting 99.6% of their asking price, versus 100.2% in 2018, it begins to become clear that the market is softening ever so slightly. Now remember, sellers are still getting 99.6% of their asking price, so let’s not misinterpret a slight decrease in a few metrics to mean we are in a buyer’s market, or that recent buyers are now upside down.
Appreciation is still happening across the Denver Metro area, at an average of 2% YOY.
In addition to the sales units being down, rate of appreciation decreasing, and % asking price decrease, there are a few other metrics to consider. Active inventory is up 4% compared to June 2018, and interest rates are about a full percentage point lower than they were this time last year. Buyers have more homes to choose from and better access to money. Usually that will mean an increase in activity, and that’s why you see the large increase in pending sales (homes going under contract). When a large increase in pending sales does not result in a large increase in closed units, it can mean the beginning of a shifting market.
Real estate planning always boils down to your unique goals and challenges. If you need to talk to a professional about the specifics of how today’s market impacts you, give us a call today.