Moderation Trend Intensifies
Market moderation intensified a bit in September which is not totally unexpected for this time of year. Market statistics indicate a decline in closed sales compared to August and a moderate decline in under contract (new sales) for single family homes in September. It was reported that September saw a continuation of an unusually high number of contract cancellations indicating caution on the part of home buyers. This would suggest there is more than just seasonal factors influencing the market. The frequency of multiple offer scenarios continued to decline in the market. Despite an increase in active inventory on an annual basis, the supply of homes remains statistically low and the demand remains healthy. A few highlights from September:
- Number of available listings for the month increased by 5.4% in a year over year comparison
- Number of Homes Sold declined 20% from August
- Single Family Homes placed under contract (pending sale) decreased 2.5% from August
- Average Sold price declined .6% from August and increased 6% from September 2018
- The number of list price reductions in the MLS continued to increase
- Less than a two-month supply of homes for sale exists in our market (more than five months of inventory is considered a buyer’s market)
- Average days on market (33) increased 22% in in a year over year comparison
- New construction activity continued at a healthy pace as builders push to take advantage of current market conditions (more available inventory – more buyer incentives)
- Mortgage rates were volatile in a range of 3.25% to 3.75%
- Underlying trend (rising # of homes for sale, declining # of sales, rising days on market) towards a more balanced market moderately intensified
Bottom line, current market conditions remain generally positive for most buyers and sellers. The ongoing trend towards a balanced market will be more obvious during the holidays and winter season when typical seasonal moderation has a greater impact on the market. Low interest rates should continue to support the market as we enter the New Year. If a move is in your future, now is the time to discuss your real estate plans. Market conditions vary from neighborhood to neighborhood. Contact me today for an update on the value of your home.
Below is a Denver real estate market snapshot based on September 2019 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 contact us for more information.
Questions? Let’s talk – contact us anytime 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.