Real Estate Market Update March 2021: Evergreen, Golden, Morrison and Conifer
It’s almost like bad dream for real estate agents these days. There has been nothing like this housing shortage in our lifetime. There is just nothing available to buy in most markets in the country. Speaking to agents around this great nation has shown that Colorado is not the only state having a housing shortage.
Let’s focus on Colorado, actually the Denver Foothills in general. It seems almost silly to continue to do market updates since it is pretty much the same thing over and over. Buyers are just throwing their hands up in frustration because the offers they write are not getting accepted. It is truly a frustrating time to be a buyer in the Denver Foothills. Buyers are making cash offers over list price and still losing.
As always we like to start with the metric that shows the market in one graph. The graph on the right is the number of active listings over the last couple of years in Evergreen, Conifer, Morrison and Golden. This chart tells the frightening story of a very unbalanced market. This is a graph that shows that sellers have control. There are 33% of active listings than we had at the lowest valley in years.
This chart shows why it is so difficult for buyers to get a footing on the market. Buyers are writing offers that are not getting accepted. As a buyer in this market, they need to understand they need to make a solid first offer and make sure it is a strong offer that leans to the seller’s benefit.
Also, keep in mind that there has been very low inventory for the past 5 years so being lower than the last 2 years is not even telling the entire story. The inventory is lower than it ever has been.
The next metric to look at is the days on market. This number is self-explanatory. It is how long a home is active in the MLS. This usually goes hand in hand with the number of active listings. Typically when you see a lower number of listings they tend to sell faster. That doesn’t seem to be the case here. The days on market are very much all over the place. That is OK tho it seems to make sure prices are actually proven by the market. That is why when people say the bubble word I tend to disagree. Sellers are still testing the market by putting their homes on the market for more than the market is willing to pay. That is why we have some homes staying on the market longer than others. If you look at the chart on the left the trend is almost going towards longer days on market.
Market Recap March 2021
We continue to prove values day after day. This is helping to sustain our values and proving this is not a bubble. More of a housing market that is appreciating at an unprecedented rate. This is proving that it is still most likely a good time to buy still. We may not see an appreciation at such a huge rate moving forward but it seems like we won’t contract. We will just move at a more normal pace moving forward.