Where is the Real Estate Market Headed?
DMAR (Denver Metro Association of Realtors) releases monthly reports with quite a bit of data. Now how we interpret the data is subjective, but if all current reports suggest a continued rise of Home Value’s for at least the next 24 months, we can look back to see what has happened to help predict the future. Of course there are many variables that exist today that did not exist in 2015. For example, there were major oil and gas industry layoffs in 2015, and in 2017 we face predicted rising rates and a shortage of listed home inventory combined with the housing affordability index being in the negative.
Looking at these numbers, we can see a strong increase in the average home price in Colorado over the last two years. We can also see a dramatic decrease in inventory which obviously effects supply and demand...more buyers after the same house pushes prices/values north...This is also supported by the significant drop in the days on market and the bump in the average sales vs list price percentage.
Thank you,
Sean Michtavy
(m) 720.550.2698