"At first glance, you might think the Denver
real estate market decided to participate in the ALS ice bucket challenge
as sales activity cooled. On the residential side, we experienced an
11.35% dip in sold homes while the previously hot condo market dipped
7.87% compared to the previous month.
Realtors across the board echo the same
sentiment, ‘buyers were not rabid about finding a home as they were in
previous months during the frenzy. As things slowed down and sellers
jumped into the market late, some were left wondering where the sea of
buyers and multiple offers had gone. Many who were priced at the top of
the market found themselves with fewer requests for showings, were sitting
on the market longer than expected, and eventually had to entertain
lower-priced offers. The Denver market slowdown was partly due to
seasonality as some folks wrapped up vacations or scrambled to prepare for
the start of the new school year, which seemed to come early this year.
However, there's no need for sellers to become discouraged, as they've
done pretty well in terms of appreciation, considering year-over-year, the
average sold price increased 5.77%, and the median price increased 7.71%.
However, sellers who wish to sell for top-dollar will have to consider
making some updates and improvements such as carpet, granite countertops,
and new appliances, if they want to attract serious buyers and strong
offers.
In August, the average sale price was
$330,245 (down 1.48% from July) and the median sales price clocked in at
$277,900 (down 1.80% from July). As we've been reporting the past few
months, the hot price ranges continue to be $200k to $299k for single
family and $100k to $199k for condos. Year-to-date, sales of single-family
homes is down 10.93% but the condo market has experienced a 23.04%
increase in sales. Many brokers are feeling like the market will
bounce back in September and the selling season will remain strong heading
into fall and throughout the holidays. Consumer confidence and
affordability are up and mortgage interest rates are down to 4% - making
it great time for buyers who may have missed out during the frenzy. This
is their opportunity to get back into the hunt for a great property and
perhaps even have a little negotiating power."
- Anthony Rael, Chairman - Denver Metro
Association of REALTORS Market Trends Committee
