According to REcolorado’s latest market report, average sold prices dropped from $408,406 in July to $403,245 in August, a 1% difference. Meanwhile, homes spent 20 days on the market in July, compared to 23 days in August, a 15% change.
The numbers reflect a common seasonal trend, as the frenzy of the spring and early summer months begins to wane. But when it comes to extended days on the market, some cite reasons beyond such cyclical trends.
A recent article in the Denver Post notes that Britain’s vote to leave the European Union caused a drop in interest rates, which in turn sparked a “big wave” of mortgages refinancing. This has challenged local appraisers, who are having trouble keeping up with the demand.
“Appraisals are taking longer than ever and, as a result, are causing widespread delays with closings,” Anthony Rael, chairman of the Denver Metro Association of Realtors Market Trends Committee, told the Post. This has extended the average number of days homes remain on the market.
Despite any challenges local markets are facing, Colorado continues to rank among the top housing markets in the country, as shown by WalletHub’s recent “Best Real Estate Market” report. In the study, six Colorado cities scored among the top 25 markets nationally.
The study evaluated real estate markets in 300 U.S. cities, focusing on two main categories: “Real-Estate Market” and “Affordability & Economic Environment.” In the first category, it looked at the average number of days a house spent on the market, percentage of homes selling for a gain, foreclosure rate and so on. In the second category, it evaluated affordability, population growth, job growth rate and other factors.
The Colorado cities that ranked in the top 25 are:
Fort Collins (21st)