Good Monday Morning Everyone!
That’s right, it’s that time of year again. Football players all over America are participating in Two-a-Days. That’s when it is so hot outside, there’s a practice in the morning and then again in the evening. In between there classroom work. “Are you ready for some football?”
As you well know, this blog is not about football, but the residential market can learn a lot from football.
- First, residential markets have to take breathers, just like football players. A market can’t go at 100% year after year after year or month after month after month, etc.
- There are Allstars in football. Players that out perform other players on the same field. Residential real estate has geographic areas that out perform others.
- There are referees in football. Residential real estate has quasi-referees such as mortgage rules, appraiser rules, inspections, title, HOA, etc.
- Football has competition with other forms of entertainment, and residential real estate has competition from other financial instruments.
- Finally, there is only so much time in this crazy world. Residential real estate take a lot of time. Time to buy, time to sell, time to maintain, time to upgrade, etc.
Competition is everywhere!
With all this being said, Shelter is a common goal around the world for households. In spite what you hear or read, homeownership in the most economically productive economies is the highest. As an example, in the US, we have a homeownership participation of about 63% which has been as high as 67%. Homeownership is part of the plan. When citizens are vested in their communities, schools perform better, crime is lower and values are stronger. Encourage homeownership. It’s important, and it works for all of us!
As for this week’s #MondayMarketUpdate,
we have a lot to discuss from this MLS data.
New Listing (1602) This is a strong number, but not spectacular!
Back On Market (308) About 20-25% coming back on the market, this is a growing number. Let’s keep our eyes on this one!
Price Increase (179) The ratio of price increases to price decreases is about as big as it has been in 2018.
Price Decrease (1503) As we said before, these are sellers that want to “get it done” by years end.
Under Contract (1608) Once again, this is a strong number but not earth shattering.
Withdrawn (253) Hidden in all these numbers is this little GEM! Sellers giving up is slowing down.
Sold (1317) This is a little weak. I would have like this number to be about 1,400-1,450.
Long story short, Denver’s residential market remains healthy, but is starting to pick up some competition from other markets, its tickets are starting to cause buyers to look elsewhere, and the competition for buyer’s and seller’s time is becoming visible not only anecdotally, but also, in “the numbers”.
On the horizon in the coming season will be a very contentious election, a consensus of increasing interest rates, and an uncertain global track. Don’t worry, we will be here every step of the way to provide the kind of insight every seller and buyer in this market needs. Please do not hesitate to call! Dee and Tom 303-773-3399