Happy New Year!
2020 is still in infancy so historical looks to past percentages to make some predictions for the future of this year is everyone’s favorite pastime. Active listings have been the measure for some understanding of the housing market. Loads of listings mean favorable terms to buyer, with fewer listings means favorability to the sellers. Previous to 2014 our market was still recovering from the housing bubble. With more sellers than buyers. Throughout 2014 the landscape moved to less listings more buyers. From 2014 through mid-2018 we witnessed what is being called the “Historic” period of extreme low inventory. If you purchased in this time period you understand a full SELLERS MARKET coming out of it with epic tails of “how we bought this house”!
In May of 2018 through January of 2019, some of us took a breath after watching some inventory build in the metro Denver area. Talk of inflation in January of 2019 if the numbers continued to move towards a buyers’ market. Buyers were relieved to have a day to consider the homes they toured feeling more confident in choices. As 2019 traveled to December, sometime in mid-year due to sluggish listings ending in a 9.7% down in active listings from 2018. Moving into 2020 our Metro Denver market is still strong on the sellers side.
As you can see, we are rivaling the highest closed transactions increasing 3.43% from 2018 with the fifth year in a row exceeding 56,000 transactions. 2017 is our historical high with 59,207 closings. Fewer listings with more transactions then the previous year means higher demand. Higher demand with less inventory creates higher prices.
Our average sold price in 2019 was $486,695 an increase of 2.85% over the previous year. This has established a new historical high marking the eighth consecutive year of price gains. If you have owned your home for ten years or more you could have as much as a 68.6% increase in value from your purchase 2006 or earlier. Colorado’s Bubble recover has been one of the strongest in the country with Arvada, Centennial, Westminster, Highlands Ranch and Thornton taking the top 5 spots for the most livable and affordable mid-size cities. The measurement of economic factors includes median household income, unemployment rate, average commute times, poverty rating and home value and housing costs.
Breaking down the need include younger people or Millennials, with the largest group turning 30 this year, as first-time home buyers. Siblings or couples starting families moving to suburbs and Boomers aging in place keeping older and smaller starting homes bring us back to lower inventory with more demand… Sellers, get ready.
With mortgage rates averaging 3.9% in 2019 heading into 2020 looks like more sellers market. Keys to make a quick easy transaction include properties that are move-in ready, smaller and in key locations to live/work/play all within a short distance of each other.
If you would like more information on your neighborhood, contact me directly. 720.626.9747 or CarlaKnightHomes@gmail.com
Let’s talk about how Coldwell Banker brings innovative programs to help buyers & sellers receive the most value for their $$