“Buyers are getting more power and sellers are not loving it”– Home prices drop for the first time in seven years.
It is crazy to think ‘the day of decline’ is finally here after experiencing a massive housing bull run since the beginning of 2012. That said, the average sales price of a single-family home in Denver this February was 2.2% lower than February of last year, and the same goes for condos at a 2.3% decline. Although a quote from the DMAR chairwoman (Jill Schafer), ‘buyers are getting more power and sellers are not loving it’ does a decent job at painting an emotive picture, there is much more at play when it comes to market psychology. A big question remains in whether or not sellers will list more homes (May seems to be a telling time) while realizing that waiting to list isn’t necessarily going to equate to receiving better home prices. With that, a second consequent question is dependent on if sellers do list more homes, will buyers’ psychology leap at the inventory increaser or wait for a better bargain down the line?
Reports thus far [Uptick in Activity]
+Buyers have been taking the bate with putting 9% more homes under contract last month than the same time last year.
+Seller have been meeting the demand, with an increase of 33% home inventory compared to this time last year
+Under contract and closed homes in February was at the highest level we have seen it in 5 years
+Takeaway: Despite what can be considered a ‘slow down’ in the housing market, activity levels are not fatiguing.