There has been a lot of talk in the national news about an impending economic recession which has a lot of homeowners nervous. I wanted to shed some light to specifically what is going on in the Evergreen Colorado Real Estate Market and what to economic analysts predict for the near future. My data is based on detached single family homes so this excludes condominiums and townhouses.
The median sale price is the a little different than the average as it removes any extreme data (really expensive or inexpensive homes). The median sale price of detached single family homes in Evergreen Co as of December 2018 was $630,000 while it increased to $695,000 in 2019. That is a 10% increase in value which is exceptional considering the national average was 4.1%. According to CoreLogic they predict that nationally homes will increase in value by 2.8% for 2020.
This graph illustrates a comparison of percentage list price to sale price for 2018 vs 2019. This graph is important because it tells the story for how homes are being priced compared to what buyers are willing to pay. Overall there are no significant changes year over year but we are starting to see a slight downward trend. For 2018 homes mostly were selling in the 99.4%+ range. In 2019 we saw homes selling in the 98%+ price range which is about 1.5% to 2% lower than 2018.
Evergreen is predominantly a seasonal market and the majority of the homes that are sold are between March and September each year. I would encourage you to pay closer attention to the data in those months since Winter historically has lower inventory and it skews the data.
This data also indicates that this is still a seller’s market.
Housing inventory is very important because it tells the story of supply and demand which is a key driver for the direction of home prices. This graph compares housing inventory for detached single family homes in the Evergreen area for 2018 and 2019. Overall you can see that housing inventory has stayed between 2 months to 5 months of inventory. Housing inventory levels between 0-4 months indicates a sellers market while inventory levels between 5-8 months indicates a balanced market. Again, pay closer attention to the data in the graph between March to September as that is when most of the home sales take place in the Evergreen market.
If you are thinking of selling your home the data is indicating that we are shifting towards a balanced market. While I don’t think that there are going to be any major events that will drastically change the economy I will say that 2020 will be the best time to sell your home in order keep the equity you have earned in recent years.
This graph tells the story for the median days on market for homes in the Evergreen market for 2018 vs 2019. This is an important graph because the longer homes stay on the market the less motivated buyers are in the marketplace to buy your home. During the Summer of 2019 I saw that nicer homes would go under contract within a few days of being listed. As we got into Fall I saw similar homes sitting on the market for 30 – 45 days. This is also an indicator of us shifting towards a balanced market.