What’s new is not new again…, or
“What has been will be again,
what has been done will be done again;
there is nothing new under the sun.”
Or, “All that glitters is not gold”.
Take your pick, the more time I spend analyzing this market, the more I see what I’ve seen before.
So much of what we eat, breath and live is out of our control. We can’t control whether or not the grocery store on the corner lives or dies. We can’t control whether or not smoke from California blows our way. We can’t control the politics that run our daily lives. No matter how much we believe as individuals we are in control, we are ripping through space held on this planet by gravity with external influences applying undue forces.
As a result, predicting the next step the Denver Residential Housing Market might have is truly ridiculous. It faces its own pressures. Interest rates, employment, supply, demand, regulations, and all manner of other external forces have an impact on this geographically defined market. We can watch, wait and create our own opinions, but much more than that is really out of our hands. So, please take what these pages reveal with a grain of salt. Thank you!
Today’s chart from the last 7 days in our MLS system offers us an indication of what might be around the corner for our market.
New Listing (1190) ’tis the season for this to slow down a bit…
Back On Market (257) Note Expired Below.
Price Increase (82)
Price Decrease (1359) Price improvements will be running hot through year’s end!
Under Contract (1412) This is a very strong number. With all the price reductions, it should remain strong.
Sold (1097) Even at this lower level, moving toward a holiday season, this is very active!!!
Expired (260) Note Back on Market above. Sellers giving up and giving it one more try before year’s end are about equal. Let’s hear it for the sellers back on market fighting to the very end!
If I look at these weekly numbers individually or cumulatively over 2018, what I see is pretty transparent. The strength in this market comes from price, location, condition, appeal and that “intangible”. Anecdotally, what we’ve seen metro-wide has been buyers with a more critical and rational eye. “Irrational Exuberance” is gone from our market. Buyers are paying close attention to these nuances, and because they can now go back to the property 1, 2, 3 & 4 times before making an offer. Buyers are being more critical!
As I have written in the past, “Most buyers want last year’s prices and most sellers want next year’s prices”. This mantra may have flipped on its axis. For some buyers, the perception has become, next year the prices may be lower, and for some sellers, the perception has become, “I should have worked harder to get the property on the market earlier in the year”. As a result, we may see buyers slow the process down; Renew their leases for one more year, negotiate a month to month so they can jump on something compelling, etc.
Long story short, all of this has happened in the past, it will happen in the future, and what may have glittered last year, might not be so bright next year.
In the end, occasionally, we all need a helping hand. Never hesitate to pick up the phone and give us a call. Maybe we can spot the “gold” in your future.
Thank You and Warm Regards,
Dee & Tom
Tom Cryer, SCRP
THE CRYER TEAM
Kentwood Real Estate
4949 S. Niagara St. #400
Denver, CO 80237