Market Update December 2018

Oliver

Personal Update

Wow! What a crazy month it’s been on my end. On December 3rd at 7:53 a.m. we welcomed my grandson Oliver into the world (YES, I’m a GRANDMA!). Both he and his mom are doing great! I have so much to be grateful for. One of those things is perspective. Life is a beautiful teacher and I am thankful to be on the other side of parenthood, LOL!

Market Update

Another perspective that I’m grateful for ties into our market. Money Magazine recently shared an article entitled “This Market Indicator That Frequently Signals a Recession Just Flashed Red.” It quoted the Sound Advice Risk indicator, which is an index comparing stocks with home prices. In this article from MarketWatch, Gray Cardiff (the developer of the indicator) is quoted as saying the indicator “measures the struggle for capital” between the two major asset classes that compete for capital at the riskier end of the spectrum — stocks and real estate. When the indicator rises above 2.0 (as it did in August) Cardiff argues, it means the stock market has absorbed “a larger proportion of available investment capital than economic conditions can justify” and, therefore, can be an advance indicator of falling stock prices and economic recession. The last time this happened was in August 2005, roughly 28 months before the last recession began.

Based on what has been happening recently in the Denver metro real estate market, we are definitely feeling a cooldown. Here are some quick stats:

  • November’s sales were down 17.27% from October (which is lower than any similar number in the past three years)
  • Inventory is up 46.76% from last year
  • The average sold price of $462,344 is down 6.3% from this summer, but still up 8.68% from last year
  • Average days on market is 31
  • It’s still a seller’s market with roughly 2 months’ supply of inventory

market update december 2018

If you’ve been thinking about buying a NEW home, now is the best time. Call me first! Contact me at 303-204-6494 or jen@jmdenverhomes.com.

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