What is going on in the Colorado housing market? Is it really slowing down? National headlines are indicating that the housing market is slowing down, or that we've hit "the peak," and there is some truth to that.
If you read the national headlines, and then dig into the actual numbers, what you'll see is only a very slight slow down on sales of existing homes.
We are seeing that here in Colorado, especially over the last three or four months.
We've discussed it in our office - is it a seasonal shift or more of an overall market shift?
The first indicator of market health is the economy. In Colorado housing is driven by jobs, specifically by wages. So, the more people that work here and earn a good salary, the better the housing market is going to be.
The long-term and short-term outlook for Colorado is that our economy is very strong, and that's good for the housing market!
The second indicator of market health is the number of homes under contract. Right now in northern Colorado (Boulder County, Broomfield County, western Weld County, Jefferson County), 40% of the homes for sale are under contract. That's unbelievable!
In 2009 only 10-12% of homes were under contract, so our current market is incredible. Nothing to worry about there.
What we're seeing on the street is that some sellers are testing the market. They've been seeing the upward trends over the last number of years, and are pricing their homes $50,000 to $100,000 over where they should be.
Of course, those homes are going to sit on the market, and we're going to see some price reductions. That's normal, and a big contributor to those headlines we're seeing.
If you price your home at market value, it's still going to sell right away. We are still seeing bidding wars on properly priced homes.
So, rest assured, the housing market here in northern Colorado is very strong.
It's a good time to buy, it's a good time to sell. Enjoy the economy, and be happy that we're here in the sunshine enjoying the abundance!
If there's anything I can help you out with, or if you have questions about specific properties or neighborhoods, give me a call.
I'm happy to help you out! 303-828-6655. Thank you!