Recovery! After the median sale price in the Denver metro area experienced a 7% decline in value from spring 2018 to December 2018, the first quarter showed a full recovery in market value. The market surged in late March 2019, bringing our values back to spring 2018 levels.
The news over the coming months will likely paint a distorted picture of housing values “skyrocketing,” because the data will reflect 2019 appreciation, and not look at values in the broader context.
What caused the year-end 2018 correction to be so significant compared to typical seasonal cycles in pricing? Mid-term elections, the stock market correction, and a surge in housing inventory (which decreased demand and caused pricing to pull back).
As we work through the spring market of 2019, we expect overall market values to surpass last year’s highs and move to net positive appreciation for the historical market cycle.
The Denver metro market is currently strong and should continue to positively appreciate through this next quarter of 2019. The market will likely plateau as we close out the second quarter, and values are anticipated to stabilize over the final half of the year.