This is the time of year that the real estate market takes a bit of a breather. More accurately, some of the participants in the market take a breather. Kids graduate, the concert and arts schedule cranks up, folks head out of town on vacation, including the Realtors that propel the market, and the Fourth of July Holiday weekend anchors the summer.
The market itself doesn’t actually take much of a breather. Even though you may have heard anecdotally that “the market is slowing down,” the data just doesn’t support that premise. In fact, this year it would be a complete misread of the market.
The reality is that we are following a pattern that has become well-established over the past three years. I call it the “Summer Simmer.”
The easiest way to describe the Summer Simmer is with a pot of spaghetti. That’s right, a pot of spaghetti.
Think of the real estate market as a pot of spaghetti. The pot of spaghetti begins to heat up in February. By March, it reaches a gentle boil. In April, the gentle boil becomes a vigorous boil that is foaming up and spilling over the sides of the pot. In May, it’s as if a lid is placed over the pot, immediately building up pressure in our boiling market pot and creating a full-on pasta frenzy that shakes the lid on top. For buyers and sellers “in this pot”, it’s a wild ride.
Come June, as more listings hit the market and some buyers drop out, the lid is removed from the pot, relieving some of the pressure. The foam dies down and what’s left is a more subdued market at a gentle boil. The water looks like it has cooled down, but make no mistake, it’s still pegged at 203 degrees Fahrenheit, the boiling point in Colorado.
In the real world – and not a pot of spaghetti – the Summer Simmer can be seen in the data. We see a slight uptick in the supply of listings on the market, from say 1.2 months to 1.4 months. We may see fewer showings, fewer bidding wars, and homes may take a day or two longer to sell on average.
That said, the market is still a hot sellers’ market. In fact, the Summer Simmer appears to be more short-lived this year than 2016 and 2015. Expect to see headlines in a few weeks that trumpet June as a blow-out record month for real estate sales in Colorado. And July could be even bigger. Uh oh, gotta run….my pot of spaghetti is boiling over!
Considering possibilities in this market, but not sure where to start? Give me a call or send me an email. I’d love to help.
A Refreshing Look at the Question “What is my House Worth?”
Summer is officially here. Given that “Summer Simmer” market we just discussed, let’s take a look at some of the stats for our area to get a better idea of what is going on.
In Colorado Springs for May 2017, the average sales price* was:
- $279,000 for Single Family Homes (up 7.35% from 1 year ago)
- $185,750 for Condos/Townhomes (up 7.06% from 1 year ago).
The graphic above shows that on average a buyer paid 100% of what the seller listed the home for last month. Also with low months of inventory, this keeps us solidly in a seller’s market for now until more homeowners decide to list their homes.
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average