Oh, how the seasons come and go - it seems like just yesterday we were driving up to the mountains to go leaf-peeping. But with some early snow, skiers and snowboarders across the state are making their inaugural journey to the mountains to kick off the season. When it comes to real estate, last month saw somewhat of a slowdown across the Front Range, and based on seasonal trends, we can expect prices to continue to dip as we head into winter.
As we quickly approach the new year, historically the next couple of months see a slowdown in real estate activity. This means fewer properties hitting the market, less showings, and homes generally taking longer to sell. All of this is reflected in prices, at least until January rolls around.
Already, we’re seeing these trends take shape across multiple markets. In September, we saw the median sales price for a single family home in Denver County dip to $607,500, coming off a high of $660,000 in June. Up north in Weld County, the median days on market for single family homes was 28 in July, but increased to 40 in September. In Colorado Springs, things seem a little more stable, but median sale prices for single family homes in El Paso County have decreased slightly from $450,000 in June to $441,000 in September. The percentage of closed to list price there has also fallen from 105.1% in June to 102.3% in September.
While prices have taken a dip in recent months, this shouldn’t be a concern for your home’s value.
The median sale price in Denver is almost $200,000 higher than it was in 2019!
The median sale price in Colorado Springs is about $120,000 higher than it was in 2019!
The median sale price in Boulder County is almost $200,000 higher than it was in 2019!
The median sale price up north in Weld County is more than $100,000 higher than it was in 2019!
Again, these are predictable seasonal trends, but there may be other factors at play. For one, interest rates are starting to tick up, triggering a decrease in mortgage activity. According to the latest Mortgage Bankers Association survey, applications fell 6.3% for the week ending Oct 15. Joel Kan, associate vice president of economic and industry forecasting, said “The 30-year fixed-rate has increased 20 basis points over the past month and reached 3.23% last week, the highest since April 2021.”
With that being said, interest rates are still attractive compared to historical averages. As recently as October of 2019, 30-year fixed-rates were at 3.74%, more than half a percentage point higher. On top of that, this time of year can still be a great time to buy a home because you’ll have less competition and prices are discounted from where they were over the summer. To be fair, there is still competition in many areas for desirable neighborhoods, but 8z is armed with modern solutions to ensure you land the home of your dreams.
Give your 8z Agent a call if you’d like to discuss your options!