Q: Are we going to experience a housing bubble that could burst?
A: To experience a bubble we would need rising price appreciation and rising inventory. We do have the appreciation for the housing but we only have 25% of the inventory needed to offset demand for a balanced market. There are 66 net people moving to Denver each day and it is still an extreme Sellers market.
Q: Are home prices going to go down in Denver?
A: In 40 years the average home sale price has gone down in only 8 of those years. We are still in a ‘slightly-less good sellers market’ but there is going to be home appreciation this year but not as much as 2017 and 2018.
Q: What should a buyer do if they are concerned about a recession or housing bubble?
A: Buyers concerned about a housing bubble should by a resale home in an established neighborhood. New construction gets hit the hardest in a recession and typically new homes are on the outskirts of town. Purchasing a home in the fall is also a good strategy as home prices typically not as high as they are in the spring and early summer.
Other interesting points:
- Flash sales – homes that went under contract in the first 7 days slowed down in August but was still 36.6% of all listings.
- 41.2% of home sold in August were for list price or above.
- 40% of homes sold in August needed a price reduction before they went under contract.
- Interest rates are typically low during an election year, stocks are volatile during the election but usually there is a run up in the stock market shortly after the election.
If you have any questions about the real estate market in Denver, feel free to call me at 720.203.9624, or email [email protected]