for the month of May 2018
Of the 1543 homes available for sale this past April in Metro Denver, 1272 sold and closed! With median sale prices of $440,000 homes are selling on average within 20 days on market, thanks to an unusual and remarkable marketplace we’ve been experiencing. This real estate market appears to have something to offer everyone who wants to buy or sell a home this year!
IT’S A BUYER’S MARKET! Buyer markets are created when, thanks to inventory and demand circumstances, buyers are exerting greater control over selling prices. In the luxury price points this is what we are seeing.
IT’S A SELLER’S MARKET! Tight inventory and high demand tend to put a seller in the driver’s seat concerning sale prices. This is mostly the case in the starter home and move up markets right now.
There are a great many people thronging the real estate marketplace seeking to purchase a home across the Front Range. Signed contracts are up almost 6.7% year-over-year with no signs of slowing down – except where those inventory shortages are forcing unhappy homeowner wannabe’s to sit tight and wait to buy their home. Depending on which market reports you read in any given month, the impression is the market is horrible or the market is wonderful. Volatility is the norm month-over-month, so taking a longer range view of things is the best way to get a more accurate fix on what is happening in real estate this season.
The new tax revisions and extensions of deductions for homeowners leave us with a very optimistic long range view of what to expect for the rest of this year and into next year, according to most of the statistic experts who are weighing in on this market. Contracts to buy a home have risen for the third month in a row. Inflation appears tame for the time being. Many thousands of new jobs have been created since January and while some challenges, such as those oft mentioned inventory shortages are expected to continue, the overall outlook is all systems GO!
All potential buyers should be greatly encouraged to go find that new dream home, take advantage of incredibly low mortgage interest rates and let 2018 be the year home ownership hopes are realized. The spring market kicked off to excellent statistics and the selling season is only expected to grow, grow, grow through the early fall and most probably into the early winter season.
Home prices have been heading upwards for a while now and continued price gains remain the likelihood, while slightly slowing or picking up speed depending on what happens with those inventory numbers. Probability is high they will persist upwardly mobile for the remainder of this year and most likely well into 2019.
Lawrence Yun, chief economist for the National Association of REALTORS, concludes that 2017 was the best year for existing home sales as any we’ve seen in over a decade. In spite of lingering challenges facing certain markets, Yun believes rising wages and an expanding economy will help boost housing even further in 2018, helping to push last year's gains even higher.
Colorado has consistently ranked top in the nation in real estate growth for over a decade and there is no discernible reason evident at this time not to remain encouraged that we will continue to see those high rankings for many years to come.