I get asked this question all the time. And, if I had a magic crystal ball, I’d be rich. However, I don’t, and we can never be sure what the market is going to do.
But I do have these thoughts to share. With the exception of the big market drop in 2008-2010, Summit County real estate has seen a steady increase in prices. Some years are more significant than others, and that is usually because of the number one reason for price increases – Demand is higher than the Supply. This is definitely what we have seen this year. A healthy inventory would mean that we have about 6 months worth of inventory. However, this year, for properties under $1M, we have had less than 3 months of inventory – which drives that price up.
Another factor you can watch is what is happening in the Denver market. Historically, the Summit County market follows the Denver market by 18 months – 2 years. While it isn’t an exact science, you can get a feel for what might happen in our market by studying the Denver Real Estate market.
Linked below is a very interesting report from Land Title Guarantee Company. It is a graph that shows the Average Residential Price over the past 29 years.
I wish I had all the answers, but my gut tells me this. I think we will see a leveling out of residential prices over the winter. Assuming no major market changes nationally, I anticipate a steady increase as we move into next summer, but probably not as steep as what we saw this year.
If you are waiting for that big price drop, you may be waiting a long time, or hoping for a stock market crash, because I don’t anticipate a fall in our real estate market unless we experience something like that again.
Be smart about your purchase. Don’t let emotions take over. And let us help you make a good investment.