Top real estate markets experienced a number of peaks During the first months of 2018. Home sales suffered a 1.2 percent decrease in comparison with the same eight-month period of last year. Meanwhile, prices are increasing nationwide, slowly but gaining a 4.6 percent resulting in a median price above $260,000, the National Association of Realtors (NAR) expects a 3 percent boost in 2019.
Several top real estate markets including San Francisco, Denver, Seattle and many more have slowed down their double-digit gains. Nevertheless, experts feel that still-active regions will freeze due to the mounting costs.
Despite the fact that Denver’s housing inventory saw an increase of 16.1 percent, less than 4000 homes were sold last September, while in 2017 the number was 4993. $450,000 is the median sale price in this area, and 27 days is the average time for homes to be present on the market. Another eye-opening fact is that more than 30 percent of sellers were forced to reduce list prices.
The balance between strong economic factors, high wages and rising costs, can be too hard to handle for the tech-driven state of Colorado. According to broker Ian Olsen, millennials seem more attracted to apartment building where rents are more affordable to them, in contrast with the whole process of buying a new home.
Must-Know Rapid Facts
- Home prices in the United States are up more than 50 percent since 2012.
- 4.85 percent was the average for a fixed 30-year mortgage rate.
- Higher rates generate uncertainty between first-time homebuyers.
- A new tax law caps the deduction for property at $10,000.
- Builders witnessed a 1.7 percent decrease in family housing.
- Last September, sales drop by 0.9 percent.
Clearly, we are seeing a contraction in the whole landscape, large firms may be developing less real estate projects. Fortunately, this cannot be compared with the financial crisis of 2008, an event that prompted a housing crash that took years for the country to recover.