Other than the overarching and consistently regurgitated sentiment that the Denver market is ‘hot, hot, hot’ –there is a more information needed to be disclosed to paint a fully accurate picture of our market’s health.
As we have seen a housing market appreciation euphoria over the past 5 years dictated by rapidly rising home prices and economic laws of supply and demand giving way to low housing inventory and high Buyer numbers, the gold rush cannot last forever – and the signs of slowing are already beginning to occur. Other than the obvious macroeconomic trends of rising interest rates and lacking rise in job wage growth, we are also beginning to see other factors such as decreasing number of properties under contract and longer days on market, a leading-edge indicator of decreasing sales prices and market movements. With that being said, the 8-10% appreciation growths we have seen in the past will likely not be able to sustain themselves as we see normalization numbers expectedly closer to the 3-4% range.
Reason for alarm? Likely not. Principle one being ‘one man’s trash is another man’s treasure’ scenario – buyers take note, this is prime time for you to have an upper hand advantage while capitalizing on leverage as the market shifts away from a dominant Seller’s environment. Principle two being that with our still low levels of housing inventory and steady population growth, the fundamentals of market security are still firmly in place.