In the past few years, just after the 4th of July holiday, there seems to be an awkward lull in the local Colorado real estate market. This is an odd trend that is worth examining.
Is the market cooling? Are prices coming down? Is the market going to finally tip towards buyers?
Here is some insight:
Given the historically low inventory of homes for sale, the typical buying seasons have shifted. Years ago, the most ideal time to list a property was in the late spring and summer months. These days, a majority of sellers are looking to get a jump start on the selling season and capitalize on the lack of inventory. At the same time, buyers are trying to beat the rush and are starting to look at homes much earlier. The “frenzy” of our market starts as early as March and in some especially popular areas, the madness begins in February. Now, this “frenzy” of activity can only last so long. After months of intense competition, many buyers get fatigued. Some are lucky enough to find and secure a great house during the early season. If they’ve been out bid on earlier attempts, some continue searching, while others lose hope and decide to rent and try again next year. Lately, this “wearing” down of the market hits right around the end of June. Simultaneously, this is the time of year when many buyers, sellers and REALTORS have scheduled vacations. The result is a feeling that the market is cooling. It’s not cooling. It’s just taking a bit of a rest before the next wave of active house searching and selling begins.
Are prices dropping? Not really. The peak of the market lately has been the 2nd quarter. A lot of this peak is due to price bidding on limited inventory. Prices tend to stabilize in the summer rather than continue to rise. By the time late fall and early winter arrives there is a slight dropping of prices but most of that is on the remaining inventory of homes that were picked over in the spring and summer. We’ll look deeper into these “bargains” in upcoming months.
So now that the “frenzied” market has passed and folks are taking vacations, is the market going to tip/shift into the buyers favor? Well, buyers may find a bit more time to look at housing. Days on market will go up by about a week. In some situations there will be some minor price adjustments (think ~1-5%). So while there is a little more time for buyers I wouldn’t say this trend is a shift into a buyer’s market. Just a bit more breathing room.
So, as we head into the heat of the summer, know that the market isn’t cooling down; it’s still a strong market, but you may have time to take a much-needed vacation.
When you return from vacation and want to discuss the market I’m here to take your email, call or text. I look forward to assisting you!
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In El Paso County for June 2018, the average sales price* was:
- $310,500 for Single Family Homes (up 10.9% from 1 year ago)
- $205,000 for Condos/Townhomes (up 10.4% from 1 year ago).
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