13 Sep Boulder / Denver Real Estate Market Update – September
The annual midseason slowdown that began in late May continues across Colorado’s northern front range markets. This slowdown is typically a brief reprieve between Memorial Day and late July. However, activity is slower than this time last year. The two most notable factors this month include the rate of appreciation, as well as the % under contract in the affordable home price ranges (below $750,000).
The annual appreciation rate for single family homes for sale was 10.6% in March and has steadily dropped to 6.062% today. The annual appreciation rate for attached dwellings for sale was 20.98% in March and has steadily dropped to 8.395% today. The most active segment of the northern front range market for the last five years has been the more affordable homes priced under $750,000. For the first time since 2012, there is a notable decrease in the % of affordable homes “under contract” as compared to the same time last year, indicating less buyer demand.
It should be noted, however, that the more affordable price ranges are still considered a “seller’s market,” the mid-range markets are “balanced,” and the high-end market is considered a “buyer’s market.” The above indicators of a potential slowdown are not bad, as double-digit appreciation year over year is not sustainable nor healthy for our real estate market. It does change the mindset when selling a home, as a greater number of days-to-offer and price reductions are becoming more common, especially for homes priced above market value (aka overpriced) at the onset of the listing.