2018 trends continue with some ‘hoods proving exceptional
After spending much of January running over Denver’s 2018 real estate numbers, I think low inventory and strong appreciation will continue to run the game in 2019.
However, there are some interesting neighborhood-specific deviations I want to point out.
This video provides a nice visualization of 2018 Denver real estate trends by-the-numbers.
Let’s look at some national news — interest rates may be rising slower than originally anticipated.
Last week, the Fed announced a more patient approach to raising interest rates. Rates were projected to hit 5.5 percent by the end of 2019, but this may no longer be the case. This is good news for buyers.
Loan applications are also on the rise, signaling rising rates have yet to stave off potential buyers.
In Denver, the big story is a shift away from a seller’s dream market. Sellers are facing more competition and turning to price reductions to make a close. According to the Denver Metro Association of Realtors (DMAR), 2018 ended with a 5.52 percent decrease in homes sold and a 44.71 percent increase in active listings.
[How to sell your Denver home for more in 2019]
In hot neighborhoods, listings can still go fast — in Cherry Creek East and Cherry Creek South, average days on market decreased by over 40 percent in 2018.
Sellers are closing fast and the buyers are the one’s facing more competition here. I anticipate this trend to continue into 2019.
Cherry Creek North actually saw a 1.2 percent decrease in average price over 2018, despite an increase in average price per square foot.
Washington Park East also saw some incredible change: average home price grew 11.6 percent from December 2017 to December 2018. This is strong growth, even considering Wash Park is one of Denver’s hottest neighborhoods.
[Wash Park 2019 real estate outlook]
While Denver will remains a seller’s market in 2019, the luxury market presents a more level playing field for buyers and sellers.
In this sector, inventory is up and homes are spending more time on the market. Buyers have more power and an opportunity to close at fair value. I am curious to see if this will take a bite out of the huge appreciation Wash Park East saw in 2018.
Please feel free to reach out with any questions about the upcoming selling season or market updates for your neighborhood, I’d love to hear from you.