As we wrap up a fast paced 3rd quarter, and the best September for the residential market over the past
five years, market conditions are starting to shift in favor of homebuyers as we enter the 4th quarter.
Typically in Denver, the Daylight Savings time change (Nov. 1st this year) shifts buyers efforts to find
homes on weekdays and evenings to more time on weekends and day time hours. This will decrease
demand in many areas and will increase the inventory of homes on the market, which are the leading
reasons why October is generally considered the best time of year to purchase a home.
Entering October, we have already seen an increase in price reductions and some sellers are now facing
the reality that they may have missed the peak-selling season. Overall, showing activity, a valuable
metric to track the market, is starting to slow as well, making this an opportunistic time for homebuyers
to find a new home.
At the end of Q3, the average sold price was $356,005, down 2% from the previous month, but up 12%
year over year, while listings under contract decreased by 10% in September to 4,844. This is a 4.8%
increase year over year. A quick year to date summary shows new listings at 54,816, DOM at 29, average
price at $362,200 and a record-smashing $15.4 billion in total sales volume, a 15% increase over 2014.
According to the S&P/Case-Schiller U.S. Home Price Index, San Francisco and Denver reported the
highest year over year home price gains in the nation. These are the only two markets to realize double
digit gains, while Denver posted a whopping 10.3% increase compared to the 5% national average many
Nationally, the economy continues to grow quarter over quarter with Housing making a major
contribution as Residential Investment has grown at an annual rate of nearly 10%, faster than the GDP.
With much speculation, any interest rate increase by the Federal Reserve, now expected in December by
many, is not likely to derail the strong housing performance.
The bottom line, there is opportunity to buy and sell in Denver and it is still one of the best places to live
in the country. As a buyer, the next 100 days will present more options for you than we have seen this