With the dive of the U.S. stock market this past week you may be worried about how the housing market is affected. According to the National Association of Realtors, in 2014 21% of buyers used earnings from the sale of stock or bonds, or loans against a 401(k) in the purchase of homes. That being said demand may see a decline with the fall of stock values, giving potential buyers hope in a market that has favored sellers in 2015. Jonathon Smoke, realtor.com's chief economist, assumes potentially 20% of buyers could hold off on a purchase due to the recent stock declines. A balanced market should make for optimistic buyers in the coming months.
Denver continues to be a nationwide housing leader, falling one position in August to third nationwide based on listing views as an indicator of buyer demand, and median days on market as an indicator of supply. Denver is at the top of a list of twenty U.S. real estate markets which are seeing 1.8 to 3 times the number of views per listing in comparison to the national average, and inventory is moving 29 to 48 days faster than the rest of the country. Colorado is expected to have a median price increase of 5 to 6% in the next 12 months, with a national average of 3.6%. The Six month outlook for Condominiums, Townhomes, and single family homes is very strong in Colorado. In fact Colorado's market is very strong in all areas except seller traffic, which Colorado is weak in at the moment, according to the National Asociation of REALTORS.
With such a hot Colorado real estate market it is a great time to sell your home as they are moving fast as demand is incredibly high. In light of recent events concerning the stock market we could potentially see a more balanced market giving potential buyers a reason to be optimistic.
Sources:
"Does Housing Take a Hit When Stocks Drop" realtor.com (Aug. 27, 2015)
"The 20 Hottest U.S. Real Estate Markets in August 2015" realtor.com (Aug. 31, 2015)
"REALTORS Confidence Index" realtor.org (Aug. 20, 2015)