Anyone who owned a home through the Great Recession of ‘08/’09 can be forgiven for thinking that every “peak” in values must be surrounded by a “valley” of some kind. Data provided by the Colorado Association of REALTORS® suggests that sometimes a peak is more of a plateau. At least, that’s how the data presents in the Boulder-Denver metro area.
According to CAR data, September saw 15.6 percent fewer single-family homes for sale from a year earlier, and 8.4 percent fewer condos. For those two property types, August sales were down 17 and 12 percent year over year, and July sales were down 12 and 7 percent respectively. And yet, inventory is even tighter than last year, down 24 percent in September 2017 versus a year earlier.
Not surprisingly, median prices have risen over that same period, up 7.3 percent for single-family homes and 12.4 percent for condos and townhomes. Clearly, demand for available inventory is still present, though not at the same level as previous years.
The Great Recession was a dramatic event that reshaped our landscape and our expectations. But if you look at the real estate market before and after, what you see is a growing region, now reaching its peak after a nine-year recovery, and continuing what would have been a natural trajectory had the Great Recession not occurred. The “peak” we’re seeing in today’s real estate market more closely resembles a tapered incline—and an opportunity to catch your breath.