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Buyers Have A Little More Clout Than They Did Six Months Ago

From KDVR in Colorado. “Experts said Denver’s housing prices are down about 4 percent this fall, part of a seasonal market compression customary for this time of year. Kelly Moye with the Colorado Association of Realtors said Denver’s housing market goes through a compression every fall. She said properties sell quickly from January through late June and then slow in July and August.”

“‘July and August may as well be Christmastime around here, because it’s very slow,’ said Moye. As a result, Moye said sellers drop their prices to sell in the fall. ‘When you see reduced prices, that’s where the statistic of the 4 percent decline comes from,’ said Moye.”

“Hope Byrne with HomeTrust buys, flips and sells homes. She said while homes will continue to appreciate, she expects it to level off from the yearly 10 to 12 percent increases Denver’s housing market is currently experiencing. ‘It’s been a crazy increase. 10 to 12 percent a year will spoil anyone. It’s not sustainable,’ said Byrne.”

“But with a strong economy and population growth, Byrne said Denver’s housing market isn’t slowing down anytime soon. ‘A house normally appreciates at 5 percent a year, so that’s what we expect to see,’ said Byrne.”

The Denver Business Journal in Colorado. “October was an eventful month in metro Denver’s housing market, as inventory and sold homes slightly dipped from the previous month, but sold homes sharply decreased from last year, according to the Denver Metro Association of Realtors.”

“Inventory was up 35.28 percent from October 2017, but down 3.04 percent from September 2018. Sold homes dropped 15.89 percent from last year, but only down 3.89 percent from the previous month. Jill Schafer, the new chair of the DMAR Market Trends Committee, said the metro still has ‘a ways to go before we get to a buyer’s market,’ even though there have been price reductions and better inventory.”

“Though it seems like houses are taking a ‘little longer’ to sell, with an average of 29 days on the market compared to 19 days in June, that just means ‘we’re in the middle lane going the speed limit,’ she said. ‘Anytime you go from 100 to 65 miles an hour it feels like you’re crawling, but, remember, you’re still moving forward and the market always slows down when the leaves fall,’ she said.”

A report from the Tennessean. “Nashville homebuyers gained an edge this fall as prices rose at the slowest pace in four years. The inventory of homes for sale — which has been tight for years — grew in the third quarter, offering shoppers more choices. ”

“Year over year, 14.7 percent fewer listed homes sold from July through September, according to Re/Max. The winter months will likely see a similar downtrend, said Jeff Checko, a Re/Max Advantage Realty agent and housing developer.”

“‘I think buyers have a little more clout than they did six months ago,’ Checko said. ‘In the winter months, you do scale back. I just had a home I was willing to take about a $10,000 price deduction to make it work for a buyer. If it had been June, I probably would have said no.'”

“Checko owns a construction company and recently decided to build smaller, more affordable units than originally planned in the urban core because of the rising interest rates.”

“‘We decided to target a price point a little lower than we had been because we felt it would continue to perform as interest rates go up,’ he said. ‘Millennials and middle-class buyers buy based on payments. They say: ‘I’m going to find out what $2,000 a month will get me.'”

This Post Has 11 Comments
  1. ‘When you see reduced prices, that’s where the statistic of the 4 percent decline comes from’

    That’s why they put you in charge Kelly.

    ‘A house normally appreciates at 5 percent a year, so that’s what we expect to see’

    If inflation isn’t at 5%, this is BS. Even the UHS economist gets away with saying “easy” 10% increases aren’t abnormal.

    1. ‘When you see reduced prices, that’s where the statistic of the 4 percent decline comes from’

      Masters of The Obvious. That’s why they’re Realtors. No other organization has a need for or willing to pay for such profound aphorisms.

  2. I just had a home I was willing to take about a $10,000 price deduction to make it work for a buyer. If it had been June, I probably would have said no.

    I’m sorry, but isn’t that the sellers decision? I really hope you aren’t hiding offers from people!

  3. ‘buyers have a little more clout than they did six months ago…I just had a home I was willing to take about a $10,000 price deduction to make it work for a buyer. If it had been June, I probably would have said no’

    So 6 months means it’s not YOY seasonality. What happened 6 months ago? Not much really. And it just so happens several other white hot markets went into reverse about the same time.

    Why doesn’t the media ask this? If this is all fundamentals supporting these “skyrocketing” shack prices, what is the likely hood of fundamentals turning on a dime all across the country, at the exact same time? I’d say no chance in hell. But it is consistent with a speculative mania losing it’s psychological grip.

    1. I think the parking at SF Giants games is over $50 now. I don’t understand how they’ve been able to raise all the prices so high. The average family certainly can’t afford it anymore.

  4. “Experts said Denver’s housing prices are down about 4 percent this fall, part of a seasonal market compression customary for this time of year.

    Odd, I don’t remember this mythical seasonal “compression” last year or the year before that. But you stick with that story, Kelly, even if each month’s data brings new and indisputable evidence of cratering.

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