July is a time of year when we traditionally see the Denver real estate market take a bit of a break, says the Denver Metro Association of Realtors’ Market Trends Committee.
However, this year, the market has been as unpredictable this year as our weather. The adage in Denver is that if you don't like the weather, wait 15 minutes. That advice rings true for many sellers, as patience might be the key to finding the right buyer. Amazing properties can languish on the market, while unremarkable homes sell immediately leaving many to question what is happening.
I've recently heard Realtors® express we are shifting into a buyer's market. This is hard to define as the pandemic turned some of our steadfast rules of what constitutes a seller's market versus a buyer's market on their head. Statistics indicate that we are moving towards a balanced market with 2.86 months of inventory, a number which has continued to grow steadily throughout the year. However, some price ranges, and areas of town, have simply become a buyer's market due to the number of available options.
The market experienced a slowdown with an 11.58 percent decrease in new listings month over month, although new listings were up 7.58 percent year over year. This means that fewer sellers listed their homes in July, while the larger trend continues to showcase that not all homeowners are married to their historically low interest rates. Instead, they may be some of the savviest consumers understanding that a potential rate cut this fall could increase buyer demand.
This increased competition may take us back to a landscape where home prices rise as multiple buyers bid on the same homes. Buying now allows for a thoughtful search with room for negotiation and a refinance down the road.
Meanwhile, active listings increased 3.62 percent month over month and an astonishing 68.03 percent year over year to 10,584. In fact, year to date, active listings are up anywhere between 44 percent to 161 percent when compared to the three years proceeding. Pending sales stayed steady month over month with a slight 0.18 percent decrease to 3,896, while closed sales dropped to 5.19 percent to 3,708.
Buyers, aware of the rise in inventory, have been negotiating as close-price-to-list-price ratio is the lowest it has been year to date since July 2020. Median close price dipped slightly month over month from $601,000 to $600,000, but prices continue to rise compared to a median close price last July of $590,000. Meanwhile, median days in the MLS continue to increase steadily, with a 15.38 percent increase month over month to 15 days, and a 66.67 percent increase year over year.
As the summer selling season winds down throughout August, the change in our marketplace may be the perfect timing as we find ourselves transacting business in a new way. Buyers have the ability to negotiate, which in some ways is like shopping for the best deal during the Nordstrom Anniversary Sale. It provides the opportune time to find a new home before prices go back up.
Keep reading for a breakdown on properties sold between $500,000 and $749,999 from West + Main Homes agent Michelle Schwinghammer!
Learn more about the market from the Denver Metro Association of Realtors.
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
