Jim Renshaw, Sales Manager of Denver’s Land Title Guarantee Company, spoke to the annual Kentwood retreat last week at the Sebastian Hotel in Vail. His message was clear. The Denver real estate market is slowing down but still is healthy overall. Brokers just have to accustomed to what a normal market really is.
What’s not so healthy?
The fact the longer a home stays on the market, the lower the likely price will be compared to the Orignal Asking Price. And, sold homes now stay on the Denver
real estate market over 33 days on average. Toss in the unsold homes and the there are over 7 weeks of inventory to be absorbed by current sales. Homes priced above $700,00 can take up to 82 days on the market or more.
Increasingly, Sellers are facing a dilemna. Do I lower the price or risk not selling before the Holidays. To be fair, some homes are still selling in the first week on the market and with multiple offfers. But, those tend to be priced below $400,000 and in the most desirable neighborhoods.
In addition, home sales are slowing down. The overall Denver market is down only 5%. But, sales are closed sales. Under contract sales in Arapahoe County are down over 12% over last year.
What’s the good news?
This summer has been slower than previous summer selling seasons. It is cyclical. This summer slump started in mid-May according to Renshaw. He also said he expects the fall home sales to pick up again soon.
Best of all, Colorado job growth continus to graw. In fact, Colorado is now ranked #10 in the nation for job growth. This bodes well for the future of housing. New home contstruction still can’t keep up the demand. There just isn’t enough land for development. And, Amazon and other large employers already committed to expanding in the Denver metro area. We just don’t enough supply of homes for all the people moving here. So, look for prices to generally ease upward over the intermediate and long term.
So, the Denver real estate market is changing. It’s better for buyers. It’s better for Brokers who now have more homes to show. Only Sellers expections have dropped a little.