By JIM SMITH, Realtor
Because of recent national and regional reports that the real estate market is changing from a seller’s market to a balanced, or even a buyer’s market, I have drilled down into the statistics for real estate activity in Denver and Jefferson County, looking for evidence of that shift. After all, as in politics, all real estate is local, and even reports about Metro Denver’s real estate market don’t necessarily reflect what is happening in each of the metro area’s six counties.
So, are the Denver and Jeffco real estate markets changing from a seller’s market to a balanced or buyer’s market? The answer appears to be “yes,” as I’ll show below, although the data in the 25-month charts above provide no indication of a coming slowdown. While 25 months might seem like an odd timeframe for a chart, I used it so you could compare this November (on the outer right) with November 2016 (on the outer left) as well as all the months in between.
Two measures of a market’s health are the trends in median sold price and the median days on market. The charts show continued year-over-year increases in the median sold price in both Denver and Jefferson County and only seasonal changes in the days on market. When median days on market are this low — ranging from 5 to 16 days in both Denver and Jefferson County over the past two years — you know it’s a seller’s market.
However, the listings that are currently active or under contract and those which have sold thus far in December suggest that, from a purely mathematical standpoint, 2019 statistics will document a shift in Denver’s and Jeffco’s real estate market.
As I write this on Tuesday, December 11th, there are 1,832 active Denver listings on REcolorado. The median days on market of those listings is 54, more than triple the median days on market for last month’s sales. There are 1,230 Denver listings that are under contract, and their median days on market is 24. Of the 200 Denver listings which closed between December 1st and 11th, the median days on market was only 20. Clearly, as those currently active and under contract listings change their status to “sold,” the median days on market will rise significantly by month’s end and into 2019.
The figures for Jefferson County mirror those of Denver. Median days on market for active listings is 42, median days on market for under contract listings is 25, and median days on market for listings sold December 1st to 11th is 19. As with Denver, it’s safe to say that Jeffco’s market has already begun to slow, and statistics will reflect that in coming months.
If you’re thinking of selling your home, don’t let yourself be blindsided by this evolving market. You can still sell a home quickly in a slowing market, but only if you price it correctly. As I have written before, you can’t underprice a home, because competing offers will drive the price upward. And by pricing your home correctly, you’ll benefit from those competing listings that were not priced appropriately. Call me or another Golden Real Estate agent at 303-302-3636 if you’d like advice on pricing your home to sell.