for the month of June 2019
The spring home sale season is closed and according to the most recent report from the National Association of REALTORS® almost 50% of homes sold did so in less than 30 days. Homes flew off the shelf and the sad thing is, we’re still singing the same tune – inventory is swinging lower and lower by the week! Can it truly be that everyone is completely satisfied with the home they already own, or is something else clogging up the pipeline of inventory for sale?
According to Lawrence Yun, NAR’s chief economist, “…current sales activity is underperforming in relation to the strength of the job market”. It’s only the beginning of June! Potential home sellers can’t have all gone on vacation at the same time, could they?
Buyers still report that saving for a down payment is the hardest part of buying a home, and others indicate they believe, despite so many facts to the contrary, that renting is cheaper than owning. But even those excuses aren’t keeping record numbers of buyers out of the real estate market all along the Front Range. Most people who haven’t bought a home yet cite the lack of inventory or that they’ve simply lost heart after losing out on a home they wanted, perhaps even more than once.
Easing mortgage credit requirements and that strong job market are driving more people to make the decision to buy a home. 1050 in Jefferson County overcame the challenges and did just that in May. Average sales prices of $484,047 did not deter them from their purpose, though that is up from $478,511 last year. It is true that so many obstacles that used to be the reasons not to buy have been removed. Still, there remain many who, though they’ve attempted to make a purchase, haven’t had success… yet.
While choosing the house you are committing to live in and make payments on for possibly the next 30 years surely hasn’t suddenly gotten easier, inventory levels hovering at 3 months or less does place a bit more strain on the process.
Those who need a mortgage may find they are competing with cash buyers who aren’t expecting any seller participation in repairs, no matter what the inspection may reveal.
Buyers at the start of the home purchase process may discover tougher competition from those who have been looking longer and, having been outbid previously, are far more aggressive and far less demanding of a seller.
Hopeful homeowners are adjusting to the fact that they may have to look outside their preferred ideal neighborhood due to lack of sufficient homes offered for sale in those neighborhoods.
In spite of the plentiful data pointing to favorable seller conditions, current homeowners who otherwise would be selling for move-up homes or for downsizing reasons don’t seem as eager to jump into the market in robust enough numbers to fully meet the current demands.
Yet we are confident and optimistically cautious concerning the real estate marketplace in Colorado.
We remain buoyed by the fact that we consistently make the top ten list across the country.
And take into account that according to all recent results, Coloradans are feeling confident about our economy, job market, their personal financial circumstances, and their perceptions of the real estate market in general. Whether or not buyers see slowing sales price increases as an opportunity will be a large factor in shaping this year's overall sales data.