Wow! What a difference 3-months makes. In September the STAR Momentum indicators for Pueblo and Colorado Springs were very strong both short-term and long term. Denver looked like it had some concern in the long term, but otherwise appeared strong. The TAPS graphs suggested that all these areas were strong seller’s markets. Now, they are all verging toward weak. That’s a 180 swing.
From a wealth accumulation point of view, Denver, the largest market in Colorado, reflects the state of Colorado. All three graphs indicate that these areas in Colorado are still appreciating markets but appreciation has dropped significantly to 5-6%, less than half of what the appreciation was in mid-September.
Notice that the long-term and short-term moving averages crossed over in the last year and continue to diverge.
We’re seeing a significant dip in appreciation which we have been anticipating since the two moving averages crossed last year. If it continues in this manner, expect housing prices to drop sharply and monthly inventory to grow in all three markets. At this rate, within 6-months it will be a buyer’s market.