As the last days of summer wind down, a REALTOR.com analysis of housing data for the first three weeks of August reflects a national market that is tipping slightly toward buyers’ favor in the Colorado re-sale market. While sellers still have the advantage, it’s showing signs of lessening, a national analysis notes.
Jonathan Smoke, REALTOR.com’s chief economist, commented that the August market represented “the time of year when both inventory and demand typically reach their peak.” “This year we’re seeing inventory continue to grow in August. And while overall demand is strong, the trend on median days on market is suggesting that the market is finding more of a balance — and that bodes well for would be buyers who have been frustrated by the inability to find a home to buy this spring and summer.”
During the first three weeks of August, nationally, inventory of for-sale homes increased 3 percent month-over-month. Median list prices nationwide rose 8 percent year-over-year to $233,000. Also, the median days on the market of listings was on the rise in August, increasing to 75 days as houses advanced notice OCTOBER 2015 take slightly longer to sell — another sign reflecting a market that is slightly tilting to the buyers.
This swing towards equilibrium is also supported locally, where in August 2015 home sales dropped to 303 homes sold, a decline of 3.3% from the 313 sales in July 2015, but were up 3.8% from the 292 sales in August 2014. This would seem to establish the seasonal slowing trend that began in June, but it’s worth noting that the decline has been a gradual one.
In northern Colorado, home prices also fell in August 2015, with the median price dropping to $320K, a loss of 4.7% from $335K in June 2015, while the average price declined 6.4% to $358K from $381K in July 2015. While this may be a statistical anomaly, the trend line provides a more accurate read on what’s happening and that continues to show upward strength over time.
Inventory is still rising, but remains lower than optimal for market balance. There were 618 homes on the market in August 2015, an increase of 5.3% from 587 homes in July 2015, but 14.6% less than the 708 on the market in August 2014. The months supply of inventory (MSI) increased slightly to 2.0 months from 1.9 months in July 2015, so the very strong seller’s market conditions persist, despite the slight reversal of trend. What are the current market trends in your neighborhood?