Average Denver Homes Prices are Currently Record-Breaking

In this podcast we tackle three quick questions:

1. The average price of a home in Denver as of the end of August was just above $600k. This breaks previous Denver records for average home price, yet it is skewed due to higher priced inventory selling rapidly (this is due to the perfect trade-up buying market with low interest rates, high equity, and more inventory out for higher priced segments).
2. The average price for a home in Denver will most likely drop in late 2020 and possibly throughout 2021, most likely causing a lot of media headlines and consumer confidence in the market to shake a bit. This will likely be due to an increase in lower-priced homes being brought to the market, leveling out the distribution from the recent mainly high-valued homes with that of homes in the price range of $500k and less.
3. In an election year we historically have a 15% drop in the number of sales in the 6 weeks prior to an election. This isn't too much of a difference when considering that non-election years have a seasonality cycle of a 10% dip in homes sales.

Side note: Interest rates usually go up 1/2 a percent following a presidential election.