Home Prices Near Salida Colorado: 2nd quarter 2015
We recently attended the Keller Williams Mega Camp where Gary Keller talked about the beginnings of a another market shift. The average growth in real estate is about 4% and year and we naturally move in that general direction. Many of the faster growing markets like Denver are already experience a bit of a market softening. Are we?
Near Salida Colorado, Inventory is going up, construction is still going up, sales are decreasing but prices are still increasing... We are not yet at the moment when the market shifts but it is coming.
As you can see below, inventory is increasing again. In June, it reached a low. Buyers were frustrated by the lack of homes. From June 1 till the end of August, the number of new homes on the market as compared to sold and under contract homes is reversing. We are now seeing more new homes than closed homes. This could lead to softer prices and longer time on market.
The following graph does a better job at comparing new to under contract and solds... a predictor of a market shift. From the graph below, it appears that the number of homes new on the market is decreasing, solds are decreasing, but the number of homes under contract is increasing. The next graph down may help explain this.
The number of new homes on the market is actually outpacing the number of homes under contract and sold. We are still improving in sales but the homes coming on are taking a bit longer to sell... an early indicator that things may be slowing down.
The town in the hub of our area, Salida Colorado, has its own unique market. It is a bit faster moving than the other areas and has a larger number of in-town homes.... close to 50% homes in town and 50% homes on acreage. Similar to other more rural areas in Colorado, Salida has a large number of homes outside of town. It is pretty easy to do here with a population of 5,500.
The first graph depicts Salida homes under 1 acre and called Residential. Most are in town. The 2nd graph are homes on 1+ acre. Looking at both graphs, homes in town seem to be more in demand right now but inventory in both categories is increasing faster than sales.
Why is it important to know what real estate trends are near you? If you are a seller, price becomes critical. Talk to your realtor so that you stay competitive as the market shifts. If you are a buyer, now is the time. Interest rates are still at an all time low and you will have more homes to choose from.
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