A seasonal shift may be coming to the Denver real estate market! DMAR’s June numbers (based on May data) look as though Denver’s summer slow down hit a bit early for 2018. But, with the market so hot one might mistake it for the blazing summer sun... why the early cloud cover?
Rebekah Robinson, Live Urban Real Estate Realtor, discusses the June numbers.
The Typical Summer Trend
Since Denver’s great recession recovery, the housing market’s peak appeared each spring (May/June), then entered the summer slowdown through July and August. Denver’s yearly spring real estate boom seems to arrive as temps warm and buyers begin hopping in their cars for a sunny day of house hunting.
Come midsummer, many buyers head out of the state for vacation, tire of scorching days trekking throughout metro Denver, or simply suffer from home search burnout - thus, creating the summer slow down.
This month’s Denver real estate data suggests that the “summer” slow down has, in fact, arrived before summer! In May, the average home price plateaued as compared to April ($540,624 for detached homes, and $356,337 for attached), showing a fraction of a percent difference. Additionally, DMAR reported a drop in multiple offers for homes on the market. We expect to see this plateau each year, but didn’t expect it quite yet.
So, Does This Mean The Bubble’s About to Burst?
Nope! The rest of the data shows stability in residential real estate trends. First of all, the average home price increased by 11% since the same time last year, proving that the Denver market can maintain the climbing trends we’ve become accustomed to.
Plus, the days on market have declined since both last month and last year - a surefire clue that buyers continue to snatch up properties, bolstering demand.
Why Didn't The Average Home Price Increase This Month?
The short story is that the housing market’s “spring fever” hit early this year, with climbing numbers in winter months. As explained earlier, this is atypical and may be due to savvy homebuyers hitting the market earlier and earlier to beat out the competition. People now know that late spring brings heavy competition for home offers. So, if “spring fever” arrived in the winter, it would just make sense for it to taper earlier than expected as well.
With only one month’s worth of atypical data, the numbers could simply be a fluke - though this seasonal shift wouldn’t be a huge surprise. Denverites are smart cookies and with an eye on real estate market trends, heading to the market early would be just the thing to do. After all, the early bird catches the best house!
A special thanks to Megan Aller from Land Title for the superb data insight.