These are some of the headlines you may have come across lately regarding the housing market:
- The Fed Will Probably Raise Interest Rates Twice in 2015
- Red-hot Denver housing market cools a bit in July, says Zillow
- Is Denver’s residential real estate market cooling off?
Now there is talk that because of the stock market dive last week and other financial indicators that the Fed is less likely to raise the interest rates. Let’s look at July’s sales data (I always post it on the far left of the newsletter). There was an increase in inventory compared to June and both the average and median sales price dipped. And if you some simple math, months of inventory went from 1.3 to 1.6 months. A sarcastic “wow” is what I say. Yes, there was dipping in sales, but it is still an overwhelming seller’s market. No matter what news or rumors may be out there, there is one thing for sure: Denver is more susceptive to the seasonal market cycle. Let’s look at the Montbello area as an example (see graph).
You can see how the number of listings dropped overall in the last five years. However, if you look carefully, you can see the dips from the peak sales in summer to the lows in winter. You would expect we are in the middle or just exiting the selling peak season and relatively speaking, at least, easing into the slower months. So the housing market will be cooling soon…as it normally does every year.
As always, I can assist you with your real estate needs. Just email at rogelio@rentandbuyhome.com or text 720-253-8513.
