Timing The Seasonal Denver Market

It’s often said that you can’t time the market.  However, you may find opportunities from differences between supply and demand as a result of seasonality in the Denver real estate market whether you are a buyer or a seller.

The Cramer Group studied the Denver central market using three year’s worth of data from 2006 through 2008.  We measured demand by the number of showings requested at the Coldwell Banker, Devonshire office, and we measured supply by the number of active listings reported in the Denver MLS for central Denver.

We then calculated the yearly percentage by month for both supply and demand and graphed them side-by-side:

Showings v Listings

From this chart you can see according to the orange bars that during a given year the demand for homes in Denver is greatest during the month of April, and according to the blue bars that the supply of homes is greatest during the month of September.

Subtracting the percentage of listings (supply) from the percentage of showings (demand) provides greater insight:

Difference Between

Sellers will benefit best from market seasonality in April when the difference between showings and listings is greatest.  On the other hand, buyers will benefit in the month of December when the difference is lowest. 

The chart below lists the months from best to worst for both buyers and seller:

Buyers

Sellers

December April
September March
October February
November May
July January
August June
June August
January July
May November
February October
March September
April December

While this analysis answers a question often asked of us, it’s important to remember that overpricing a home, or under-pricing an offer too much is often just a waste of time regardless of which month of the year it is.  To really succeed as a buyer or a seller you need to take into account many more factors and considerations.  If you or someone you know is looking to buy or sell a home, we would be happy to help them navigate through those factors and other considerations.

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