Redfin Says Our RE Market is at Risk

Redfin released a report last week showing which housing markets are most vulnerable during an economic downturn as Redfin created a “risk score” based on these factors: home LTVs, the share of home sales that were flips, how quickly a housing market has cooled in the first 6 months, how much net migration, a market’s share of second home sales, and annual home price gains.

Denver ranked 34th out of 98 metro areas studied with a risk score of 53.8. We ranked 11th with flip sales at 7.9% of all sales, we ranked 7th for how quickly how market has cooled this year and our LTV ratio on homes sold last year was 82%.

There was no mention in how Redfin measured how quickly a housing market has cooled. Cities with the least risk of a housing downturn include Akron, Philadelphia, El Paso, Cleveland, Cincinnati, Boston, and Buffalo. Besides Boston, who in their “right mind” would choose one of these cities over Denver?

In my new class, How to Sell Homes in a Tumultuous Market, you will learn the truth based on historical results from the last 5 recessions how the Denver RE market responds to an economic downturn.