In Colorado, seasonality matters in real estate. While activity in home buying and selling traditionally swells during spring and summer months, emerging trends show that the Autumn real estate market offers some distinct advantages. Typically, in metro areas, Buyers find that competition is down for homes after Labor Day, meaning better negotiating power and sometimes, lower prices. In Resort-area markets, trends differ. For Sellers, while the pool of Buyers may be slightly smaller, Buyers are often more motivated to purchase and to close quickly due to a job relocation or major life change. While some Buyers and Sellers tend to sit on the sidelines when it comes to buying or selling a home during Autumn months, cooler weather can bring opportunities in real estate.
The fall purchasing season loosens the reigns of tight deadlines in real estate. According to Forbes, many Buyers with families purchase homes based on the best school district for their children. If a Buyer has picked a certain neighborhood because of the school district, it’s imperative to be in the home before school begins. But if the first day of school is not a concern for Buyers, a major deadline is instantly eliminated.
The Colorado real estate market traditionally follows a cyclical trend that often correlates with the changing seasons. In areas like Denver Metro and Boulder, inventory levels and the number of home buyers entering the market typically decrease in Autumn months, affording more opportunities for Buyers to purchase a home at a lower price point and with less competition, compared to the summer months. In Denver Metro, Average Sales Price in June 2016, compared to September 2016, demonstrated a 5% decrease in sales price. In Denver Metro, average sales price for June 2016 was $415,368, decreasing to $392,948 in September 2016. In Boulder, average sales price was $634,653 in June 2016, decreasing 10% to $571,666, in September 2016.
The resort areas LIV Sotheby’s International Realty services demonstrated a different trend than the metro areas, with Autumn months demonstrating an increase in average sales price due to many Buyers seeking to purchase homes prior to the upcoming ski season. In the Vail Valley, average sales price was $955,214 in June 2016, increasing 31% to $1,256,005 in September 2016. In Summit County, average sales price was $563,825 in June 2016, increasing 7%, to $604,121, in September 2016.
In short, understanding seasonal trends in Colorado real estate can help Buyers and Sellers make informed decisions when entering the market.
Vacation-home Sellers see action
While summer and winter seasons are popular months for resort market real estate in Colorado, (both in terms of transactions and enjoyment), fall months provide some unique benefits to vacation-home Sellers. If a Buyer begins their search for a vacation home in the fall, completing the purchase and furnishing the home is easily achievable by spring. Additionally, purchasing a vacation home in the fall allows the Buyer time to experience the community in the off-season- an experience they might otherwise not get to enjoy.
Ultimately, Colorado’s pleasant, year-round weather makes home ownership (at any time of year) a joy. Contact your trusted LIV Sotheby’s International Realty advisor today to further discover the benefits of home buying and selling this fall, and you will be well on your way to making a sound real estate investment by the time the last leaves of the fall foliage change color.