Has the Real Estate Market Peaked Again?

I’ve heard this question from several people recently.  Could it be true?

The recent run up in prices has brought us back to pre recession levels.  So what now?  Crystal balls are always a little hazy, but here is a little historical perspective.

I’ve seen several of these market adjustments in my career, and they tend to follow the same pattern.  After the downturn, there is a quick stair-step price adjustment.  In other words, what we’ve seen the past couple of years is that rapid recovery to pre-recession prices.

What follows, is typically a return to a normal or balanced market.  Homes are listed for sale, buyers have a few choices, and everyone is happy again.  Interest rates are still at very competitive levels, inventory is selling in most price ranges in 30-60 days.  And the nice, clean, well priced homes tend to sell first.

To look to the future, you can usual judge the strength of the real estate market on the strength of the local economy.  Are jobs secure?  Is there growth in or near the part of town you are in?  Buyers only buy when they feel good about the direction of their employment.  And sellers may choose to sell and move into another home also when their job is secure or they recently got a raise.

Right now, the Denver market is looking good.  Our job creation, unemployment and economy are heading in the right direction.  Hang on for the ride!!