August 10th 2024.
The real estate market in Denver has seen a significant increase in available inventory, with a 68% jump from last year's numbers. This has resulted in the lowest close-price-to-list-price ratio since July of 2020. According to the July monthly report from the Denver Metro Association of Realtors, the close-price-to-list price ratio is now at 99%, a decrease from 99.6% in June and 99.9% in July of 2023. Additionally, the median close price has slightly declined from $601,000 to $600,000, although it is still higher compared to the median close price of $590,000 in July of last year.
The number of active listings has also seen an increase, climbing by 3.6% from 10,214 in June to 10,584 in July. This is a significant jump of 68% from July of 2023, when there were only 6,299 active listings. It is worth noting that the average number of active listings in July, from 1985 to 2023, is 15,502. The record high for the month was in 2006, with 31,989 listings, while the lowest was in July of 2021, with only 4,056 listings. The usual average increase in active listings from June to July is 5.4%, but this year's 3.6% increase is slower than expected, indicating that the inventory peak for the metro area is approaching.
Typically, the real estate market in Denver slows down during the month of July, but this year has been unpredictable, as stated by Libby Levinson-Katz, the chair of the DMAR Market Trends Committee. In the report, she mentioned that the Denver market is moving towards a more balanced state, with 2.9 months of inventory. "I've heard some realtors say that we are transitioning into a buyer's market," she added. However, she acknowledged that defining the market's state has become challenging due to the pandemic, which has changed the rules of what constitutes a seller's market and a buyer's market. Nevertheless, she noted that the increased summer inventory presents more opportunities for buyers to negotiate and potentially find a new home before prices rise again.
According to the DMAR report, there were 3,708 closed home sales in July, a decrease of 5.2% from June's numbers and 4.7% from July of 2023. The median number of days in MLS also increased to 15 days, up by 15.4% from June and 66.7% from July of 2023, which had only 9 days. Additionally, new listings were down by 11.6% from June, but up by 7.6% from July of 2023, with 5,152 listings. On the other hand, pending sales were only down by 0.2% from June, but up by 4.3% from July of 2023, with 3,896 sales.
The luxury real estate market, specifically properties priced above $1 million, experienced a noticeable slowdown in activity in July. This has resulted in intense competition among sellers, with 16.5 months of inventory for attached homes and 7 months for detached homes. The median number of days on the market has also increased significantly by 50% from June to 15 days. Colleen Covell, a market trends committee member and realtor at Mile Hi Modern, stated that this is great news for buyers. She mentioned that this summer, buyers in the $1 million+ range have a greater selection of homes to choose from and less competition compared to previous years. Additionally, with many sellers offering concessions to help with rate buy-downs or closing costs, buyers can still find great deals despite the higher interest rates.
Overall, the news and editorial staff of The Denver Post did not have any involvement in the preparation of this post.
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