Jun 27, 2014

June 2014 Denver Housing Report

- Originally Posted on June 1, 2014 -

Denver home prices rose at a brisk pace during Spring. Home prices actually spiked more than anticipated in the last few months, especially in the lower price ranges.

In spite of the price gains, the "percentage" of homes going 'under-contract' has fallen at least 25% from its peak in April. That does not mean that buyer demand is leveling-off, it just means that the pace of houses going under-contract with such limited inventory, is unsustainable.

This is an unpredictable market driven by fear. Some sellers fear putting their houses on the market because they're not entirely comfortable with the economy, or higher interest rates (even though rates are hovering near 4%, and currently headed down). Prospective buyers fear they'll lose-out on the appreciating market by not getting into a house. The combination of these two things has created the lowest home sales activity that we've seen in the Denver market, this time of the year. Other real estate markets across the country have experienced similar low inventory and supply-demand problems, but are now stabilizing as buyers adjust or exit the market.

In the coming month or two, we may see some easing of demand. Reasons for that will be varied, from summer vacations, buyer burnout, buyers priced out of the market, signing of new leases, and so on. A new crop of buyers will likely enter the market though, and replace those that are leaving.

With demand for housing far outstripping supply, I don't anticipate that things will change much through the remainder of the calendar year, especially in the lowest price ranges where most of the activity is concentrated.

Till next month,

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Originally posted at: Average Home Price And Trends Report. Data provided by Metrolist. Graphs copyright© Michael Dagner Group. All information deemed accurate, but cannot be guaranteed. Image attribution - percent - www.sxc.hu

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.