The Market in 2018…and 2019?
by Norris Minick
The Denver Post has published several articles this fall suggesting that the housing market in the Denver metro area is slowing…and that we may be returning to a more balanced market than we’ve seen since 2013. Since the market always slows in the fall, we’re always skeptical of these articles, but it does seem to have slowed a bit more this fall than normal. And the Post cites some interesting data, noting that closings on residential properties dropped 20% from August 2017 to August 2018, while the number of homes on the market is increasing. Listing offices are also seeing fewer showings per listing.
While we know the market eventually has to shift out of the buying frenzy we’ve experienced in recent years, no one will know whether we’re really at a turning point until February or March of next year. But some of our data suggests a change may be in the air. On pricing, for example, we’ve seen average price increases of 9.4% year on year from 2013 through 2017 across the communities we cover. Based on our current numbers, it looks like we’re going to be under 6% for 2018. We’ll believe it when we see it, but maybe we’ll see a more humane buying environment for our clients in 2019.