Well, I just received the November numbers and I was a little surprised. I see some things that are very normal for those of us who study the Denver Metro market. But I also see some things that I did not expect.
The first thing that I see is the very normal market change for the holidays. We always see a drop coming out of Summer and then especially when we head into Thanksgiving and Christmas. From October to November of 2017 we see a 14% decrease in home sales. I always expect this and see these type of numbers every year. The number that really surprised me was the average sold price from November of 2016 to 2017. We are up by 9%, November of 2016 the average price was $394,064 and in November of 2017, we were at $429,006. Now keep in mind that the Denver market has been growing at a rate of over 10% for years but with the slow summer that we had I would have expected the market to really slow down during this time. Instead, I see a good amount of activity in the market right now. The listings that I have on the market right now are seeing a good amount of showings and interest during this time of the year. This is actually very encouraging to me and gives me some excitement for 2018. I feel like what we are seeing in the market now could very easily carry us into the new year and possibly give the people in the Dever market some confidence.
In real estate, everything has to do with confidence. Sellers need confidence in the market in order to list a home knowing that they can sell and move into the home that they need for their family. Buyers really struggle in a market that they feel is not a good investment. With confidence, a buyer can boldly make an offer on a home knowing that they will be in a good place financially for the next few years. In Denver, one area of the business that has helped drive our market is all the investors. Many that are buying homes to flip them and others buying homes to hold as a rental. These investors work solely off of the numbers and the confidence in the market trends and it seems to show signs of another great year ahead.
God Bless, have a very Merry Christmas and enjoy this holiday season with all your family, friends, and all your loved ones.