Fall 2021 Denver Market Update

Between back-to-school transitions and trying to squeeze in the last camping trips for the season, the 3rd quarter is often one of the slower quarters for real estate here in the Denver market. However, an uptick in activity and other signs point to a strong market as we move into the 4th quarter of 2021. 

 

What’s happening:

After experiencing a relative slow down and seasonal return back in July and August, September felt more business-as-usual. According to the Denver Metro Association of REALTORS market trends report, closed sales were 12.81 percent lower than last month and a note-worthy 19.27 percent lower than last September. With less inventory and fewer homes to choose from, the balance of supply and demand stayed fairly steady. Translation? Another month of competition for buyers. The rise of Months of Inventory to .76 may not have felt like a large increase, but it gave potential buyers a few more options.

The big question on everyone’s minds seems to be “When is the housing bubble going to burst?” And so far, the data supports the idea that the answer is, “It’s not.”

 

While it’s true that prices are up over 15 percent from last year, now is still a great time to buy.  Why is that? With interest rates low and expected to climb, plus a seasonal increase in inventory, waiting will end up costing potential buyers more money. We continue to see more houses being purchased this year than in the past five years, and we don’t expect to see this trend change over the next few months.

 

Sure, some sellers and buyers will opt to sit quietly over the coming holiday months. Here at Hatch, some of our new clients are gearing up in preparation for a Q1 2022 house-hunt or home sale. However, many in the market will not have that option, so the expectation is that even as the weather cools off, the market more than likely won’t be following suit.

 

Speaking of ‘cooling off,’ if you’re a homeowner in Colorado, the time has come to start your winter home preparations. Now is a great time to disconnect hoses and have your irrigation systems blown out for the season. The last thing you want to deal with during the holidays is a frozen water line or burst pipes once those freezing temperatures are here to stay. If you haven’t already, test your furnace to ensure it’s working properly and schedule any needed maintenance. These quick preventative measures will keep your home warm and cozy during the upcoming winter months.

 

Are you preparing to buy or sell as we head into the 4th quarter? If so, there’s no reason to ride this housing roller coaster on your own. From figuring out what your home is worth, to navigating what’s sure to be a competitive home search, our team here at Hatch would love to help you handle the constantly changing conditions here in the Denver Metro housing market!