4 Reasons Our Market Is Cooling Off
Here’s four reasons we think the market might be starting to cool off.
We finally have an answer to the question we’ve all been asking the past 18 months: “When is this red-hot Colorado market going to cool off?” It looks like the market is starting to cool off right now, and there are four reasons we think that:
1. Bidding wars are calming down. We used to see around 15 or 20 offers on a single home, but we’re starting to see only three or four offers on a hot home.
2. The percent over list price is going down. We maxed at sales almost 103% over list price on average. This is starting to show the lack of crazy bidding wars in the data.
“There are wins on both sides of the market.”
3. Inventory is finally creeping up. Buyers have a little more to shop for, which is part of why the bidding wars are cooling down. We actually checked, and this last year, we were in the lowest inventory market since the 80s.
4. Months of supply are going up. This means if no more homes were to go up for sale, this is how long it would take for us to sell out. We were sitting at half a month worth of inventory, but even that is starting to come back up.
Another number to look at is the days on market, which is how long a home takes to sell on average. We don’t have those quite yet, but we should be able to look at them in about a month. All of this means that, if you’re a seller, you’re going to want to act in 2021 because it’s starting to look like the market has peaked, but there’s still plenty of good market left. If you’re a buyer, it’s a good time to get active again because the bidding wars have calmed down quite a bit.
There are wins on both sides of the market. Just give us a call, and we can go over your specific situation. We’ll keep bringing you the latest statistics, but if you have any questions in the meantime, don’t hesitate to reach out.
