Colorado Real Estate Market Slowed in July...What Lies Ahead?
From June to July, 2017, the Colorado Real Estate market is reporting to have slipped just a bit, and you may have seen more home listings reducing their prices. Is this the result of seasonal activity? Is this the result of sellers shooting to list too high, hoping to take advantage of the market news of rapid appreciation? I believe it is just a small correction we should have expected due to all of these and so many other of the fluid variables.
Year over year historic data by the Colorado Association of Realtors July 2017 Market Update, shows that the Colorado market is still moving higher year of year in so many categories.
I do believe that when anything is 'Hot' in a consumer driven market...whether it is a Tickle Me Elmo, or more recently Fidget Spinners...many people aggressively jump into the craze with the intent to profit. Seller's are hearing the media report of a red hot real estate market, and thus list their home at very aggressive prices. If they don't see what they want as a reaction, reality sits in and they must reduce their price. Between this and the seasonal slow down which is seen every year as school starts and summer ends...I believe we may likely be seeing a small correction as we should could expect.
It is my opinion this is a small correction and we have a couple of years before our market in Colorado levels off, but only down the road of time will the truth be revealed. As rates are predicted to go up, and the effect of the collective people thinking the Colorado Market is overpriced, and while the Market Affordability Index dips...we are likely going to see a leveling off of values with a natural correction. I do not believe our market is even close to being a bursting bubble or having any type of fallout...quite the opposite indeed.
Thank you,
Sean Michtavy
720.550.2698