The Colorado housing market has been running at hyperspeed
over the past several years, despite some of the country's worst affordability in Denver
and beyond. But things may finally be on the cusp of change.
According to a new report
from the Colorado Association of Realtors
, sales of single-family homes, townhouses and condominiums fell dramatically in September. The number of single-family homes purchased dipped by a striking 14.6 percent, while townhouse-condo transactions tumbled by 15.2 percent.
Right now, the sales decrease hasn't resulted in lower prices. Both the median and average sale price for a single-family home went up substantially last month — 5.6 percent and 7.1 percent, respectively. And the same was true for townhouses and condominiums, with the median category rising by 12.3 percent and the average going up by 6.9 percent.
Two likely reasons for these developments involve how many months of inventory are available and the number of active listings. According to CAR, a balanced market tends to have a four-to-seven-month supply of single-family homes, townhouses and condos available — and by that measure, Colorado remains seriously out of whack. Likewise, active listings are on a steady decline.
The supply of single-family homes is estimated to last 2.6 months, with townhouses and condos registering at 2.2 months. Meanwhile, the active listings in September for single-family homes (19,390) and townhouses and condos (5,005) represent drop-offs of 9.2 percent and 8.4 percent from the prior year.
These last figures suggest that Colorado remains a seller's market even though sales are falling. Clearly, something's got to give.
Continue for more about what the hell's happening in the Colorado housing market.