Crazy market finally slows…a bit
Real Estate’s wild ride settles down in Washington Park and Platt Park for the first time in almost two years. Fall slowdowns are the norm in most years but everything has been upended in the real estate world since Covid hit almost two years ago.
In my 17 years of experience in the Platt Park and Washington Park markets I’ve never seen a time like the last 20 months (the start of COVID). The demand for our homes has always been strong but this has been nuts and certainly unprecedented. Here are just a few stunning stats for this period:
- On average homes have sold for $40,000 over List Price. Multiple offers have been the norm with buyers at times taking extraordinary steps to win the day.
- Our average home values have skyrocketed 20%.
- The typical days-on-market during this time has been 4 days. It has been very common to get offers within hours of a home going on the market.
Will this continue?
I don’t think it is possible for the recent market to continue as it has been going. Home values have appreciated considerably faster than wage growth which eventually acts as a drag on price growth. How much will it slow? That is a great questions I’m quite sure no one knows with certainty.
Goldman Sachs, in a recent article in Housing Wire forecast that on a national level home prices will grow another 16% by the end of 2022. They sight low interest rates, a tight housing inventory, pandemic-induced migration patterns and an increase in millennials entering the home buying market as primary reasons for that expectation. If that is indeed the case then the current slow down will only proved to be a blip on the market.
On the local front those factors certainly apply in Platt Park and Wash Park. Furthermore I’d add the continued popularity of our neighborhoods and the overall continued population growth of the front range make such a prediction likely although my sense is it will be less than Goldman’s prediction of 16%. Time will tell but if you are a buyer now is certainly a great time to be out looking. You’ll experience considerably less competition that in recent history.
What does this mean for your situation?
Give us a call, we’d be happy to discuss your specific real estate needs.
See you around the neighborhood,
Tom & Denise Snyder