The Denver Metro Real Estate Market continued to decline in October. The decline was less severe than September. The inventory of homes for sale is still low historically. However, the number of homes for sale has increased significantly in the past six months from record lows while the number of sales has decreased consistently over the past six months. The number of price reductions in the MLS continues at a high rate. In addition, mortgage interest rates are now in the 5% range. Some of the moderation can be attributed to normal seasonal factors. However, the significant year over year decline in sales suggests this may be the start of a longer term trend. The poor performance of the market in September and October is certainly a poor indication for the short term. Motivated sellers may have no choice but to lower their price as winter approaches. If the current trend of price reductions and declining sales continues or intensifies it will be critical for motivated home sellers to stay ahead of the trend with appropriate pricing and aggressive home marketing. The relatively low inventory of homes for sale continues to provide some support for the market. Time will tell if the market moderation is just a short term trend or the start of a shift in the market. In any case it is important for sellers to realistically evaluate market conditions and stay ahead of the trend.
Below is a Denver real estate market snapshot based on October 2018 Statistics from DMAR Market Trends
This information is for the Denver Metro real estate market. Real estate market activity varies from neighborhood to neighborhood. If you would like an instant real estate activity report for your neighborhood click Market Report or call Tom Gross for more information.
Questions? Let’s talk – call or text me, Tom Gross, at (303-591-2116) to discuss your questions, plans or the current value of your home. If a move is in your future now is an excellent time to discuss home preparations and a timeline for your move.