What is happening in this market?

The question I am frequently asked these days is "What is happening in this market"? If you bought or sold a home between October, 2018 and May, 2022, you haven't experienced a "Normal Market". 2008-2011 was the worst depreciating market we had seen since 1985/86. 2012 to May 2022 was the craziest appreciating market we have ever seen. Today we seem to be heading into a more normal market, where homes may stay on the market 1-3+ months and may not sell for full price. We are seeing interest rates the highest in years, which has motivated sellers and home builders to offer incentives to buyers to purchase their homes to overcome the increase in payments due to the interest rates. These are things that occur in a "Normal Market". But when you are trying to understand our market, here are some facts to consider:

• According the Denver Metro Area Metrolist, for the 7 county Denver metro area the median home sales price is up 8.2% and the average home sales price is up 9.6% over the same period in 2021. Granted, that isn't 20+% but it isn't in the negative % range either. Keep in mind that a lot of that appreciation occurred in January-May, 2022, as it does every year.

• The Denver area real estate market is anticipated to appreciate in the 3-5% range, which is considered a good, stable market.

• The number of active listings is 125.6% higher this September than last September.

• The number of homes under contract is down 21.7% compared to September last year.

• The number of closed listings is down 22.3% compared to the first 9 months of 2021.

• The number of listings on the market on September 30th is 5658 (up 10% from August). The "experts" say that we won't reach a market "bubble" until we get to around 30,000 listings on the market. WE ARE NOT IN A BUBBLE!

• Interest rates are the highest we have seen in several years and will probably never be down to 2-3% again. At 3-5% appreciation, real estate is still a great investment (look at the stock market).

• August is historically our 2nd slowest month for real estate sales (December is #1), but home prices increased slightly in September for the first time in the last few months.

I realize that all this information is general in nature and applies to a very wide market. If you would like specific information on what your home is worth in this market, please don't hesitate to contact me.