Well, the housing buying frenzy in Colorado is over.
Or is it?
The inventory of homes is up relative to the previous 4 months and relative to the inventory in 2016 at this time.
But that isn’t to say that home buyers are having an easier time finding something to buy. While the number of newly listed homes for sale is up in May to 212, compared with 177 in May 2016, it may just be that current homeowners see an opportunity to upsize, downsize or maybe just move out of state. Or maybe we’re in a temporary lull. May, June, July and August are peak months for homebuying, so it is too soon to determine what will take place.
Here in Longmont prices rose to a median of $424,750 in May. Compare this with last May’s (2016) median of $360,000, and you see an 18.0% increase.
In addition, the average number of days a home is on the market rose from 40 in April to 51 in May. Keep in mind that a home may be under contract in a matter of a few days, but there is still a process for closing a home that typically requires 3 weeks. If the buyer is financing the purchase with a mortgage, the timeframe is 30 days or maybe a little more at minimum. That means that of the 40 days a home was on the market in April, half or more of the days were consumed with the closing preparations, leaving 20 days or less between the listing date and the home going under contract.
Yes, the market for homes in Longmont continues to be hot. And, there are indicators supporting a continued strong housing market as I pointed out in a previous post, Can the Upswing Last?