17 Nov Boulder/Denver Real Estate Market Update.
What we thought may have just been the mid-summer slowdown has become a trend, and homes are taking longer to sell than they did in either 2015 or 2016. However, this is a generality, and there are still specific locations and price points that remain very active. Also, buyers are becoming increasingly selective in their home purchases, and homes with more substantial objections (i.e., homes in need of updating, on a busy street, or an odd floorplan) are beginning to sell at discounted prices as compared to homes without these same objections. These discounts are typical of a more balanced market, similar to one we appear to be entering now.
The rate of appreciation for both single-family homes and attached dwellings has dropped steadily over the last six months. Single-family home appreciation rates have dropped from 10.6% to 5.83%, and attached dwellings have dropped from 20.98% to 7.191%. Over the last two months, the appreciation rates seem to have stabilized around their current, lower rates. Regardless, these lower rates of appreciation are more consistent with the long-term average appreciation along Colorado’s front range market.
We will ultimately know if this slowdown is just an extended seasonal slowdown or an overall market shift by March of 2018 when the market historically shows a substantial increase in activity.