Starting about the second week in July the talk among many real estate brokers in Colorado was that of a slow down. Lack of showings, increased days on market, and price drops were all main conversation topics. Debate among brokers fell into two main camps: those who suspected our housing market was heading for some sort of price correction, and those who believed we were just experiencing normal slow down for the month of July as buyers enjoy vacation and take a break from house hunting. So, who’s right?
To try and settle the debate I pulled some quick and dirty numbers from the MLS to compare market stats from last summer to this summer. For each report I just focused on detached single family homes in Denver in the price range of $300,000 to $650,000. One report has the stats from July 1, 2016 to August 15, 2016 and the other from the same dates in 2017.
Based on this quick comparison, the doom and gloomers lose the debate. Homes actually sold faster this summer compared to last summer. The average days on market for 2016 was 22, compared to only 16 in 2017. The 2017 homes also sold at a better discount rate. The sale price to original list price for 2016 was 98.98%, for 2017 it was 99.93%. Did fewer homes sell this summer compared to last summer? Nope. More homes sold in summer 2017. They also sold for higher prices this year.
Of course the stats I pulled are a little premature because of the date ranges. A “sold” in July or early August is most likely a listing in June or earlier. In another month I’ll do another comparison, but this time I’ll use date ranges from August through September. My search was also limited to properties with a Denver address. It’s possible a greater pool of properties could yield different results.