From the shifting colors of the leaves to the crisp morning air, October is traditionally a period of change. It also can be one of the very best times to buy a home, as it falls right in between back-to-school season and the holidays. This season usually ushers in a slowdown to overall market activity, when sellers may be more apt to negotiate and buyers may find more inventory than previous months. For instance, in 2018, Denver County’s median sale price for single-family homes went from $500k in May to $440k by September, and in 2019 that number went from $515k in June to $480k in October.
Make no mistake - our Colorado market is still very hot compared to historical averages. Many homes continue to sell quickly and for over list price. But the most recent data points to trends that, once again, October is an ideal buying time.
In most markets along the Front Range, the past few months have seen median sale prices slide from their peak between May and July. For instance, Denver County’s median sale price was $660,000 in June for a single-family home, but in August had dropped to $629,000. Another key data point is the percentage of closed price to list price. In Boulder County, the median percentage of closed to list price was 106.5% in May, but dropped to 100.0% by the end of August. And in Colorado Springs, we saw this percentage go from 105.1% in May to 103.0% at the end of August.
Again, the market still has plenty of demand, boasting double-digit appreciation year-over-year in most areas. However, this seasonal dip in prices and competition creates a window of opportunity for buyers. Compared to the sizzling rise we’ve seen over the past year in Colorado’s real estate market, these past couple of months have cooled down slightly to create sort of a ‘discount’ buying period.
If you’ve been thinking about buying, please give one of our 8z agents a call! It’s the perfect time to move before the first snow falls. Now let’s take a look at your local market stats compared to last year.