According to the latest Case-Schiller Index
, the Denver metro market posted another record-breaking month in August for average sale prices. These sale prices reflected under contract activity from June and July when competing, above-asking price offers were still the norm.
Since then, the market – locally and nationally – has shown signs of cooling, notably evidenced by the decrease in the number of showings on homes during their first week on the market, relatively higher interest rates, and the increase in the number of price reductions on active inventory. With the way the market has been operating this year – seemingly making 180-degree turns at every opportunity – a term like “cooling” could cause pandemonium about this latest turn-in and the future state of the market.
However, this “cooling” descriptor is not alarming, and another, more accurate, way to describe the cooling market is stabilizing. Our market – locally and nationally – is becoming more balanced. The frenetic, overly-stressful pace of the spring/summer market is not sustainable for the long-term, nor for buyers, sellers, or appreciation rates. The long-term vitality of the market – for buyers, sellers, and appreciation rates – relies on a steadier market, not one that continuously makes 180-degree turns.
It’s easy to panic when we receive news of decreasing numbers in the real estate market, but if those numbers are leading us to a more stable market, then it’s a good thing and not at all a reason for concern.
Please let me know if you have any questions about the newly released Case-Schiller Index or the market in general. And, as always, if you know of someone looking to get into the market, please let me know. It would be my pleasure to help them if I can!