DENVER — Fewer homes in the Denver metro area are being sold above market value, according to a new report this week. Zillow says the decrease could signal a slowing housing market.
According to the report, 20 percent of homes in the Denver market sold above list price in Denver during the month of December, which is down from 23 percent in November.
The share of homes selling over list price also decreased from 36.1 percent of homes in 2017 to 34.5 percent of homes in 2018 in Denver, according to Zillow.
And the average amount a buyer paid above list price in 2018 was $10,000 in the Denver area, Zillow says.
“Last year marked an inflection point in the housing market,” Zillow senior economist Aaron Terrazas said in a statement. “The first half of 2018 looked a lot like the previous three years with sellers firmly in control of the market and buyers outbidding each other for scarce inventory, pushing up prices.
“But something shifted mid-summer,” Terrazas added. “Sellers sitting on the sidelines joined in, increasing inventory. The balance of power began to swing marginally back toward buyers – particularly in higher-priced communities – during the second half of the year, an unfamiliar chill after several years of frenzied activity.”
Terrazas said that despite the data, it’s still premature to call it a buyer’s market. He said that although buyers are out there, “they’re no longer fighting each other tooth and nail to get in the door.”