DMAR Real Estate Market Trends Report | AUG. '24
Market-wide, new listings fell slightly month-over-month by 0.76 percent, while active listings at month-end climbed slightly to 10,724 homes, which is a 56.37 percent increase year-over-year. Pending sales increased 3.74 percent month-over-month and 7.7 percent year-over-year. Closed sales fell 7.55 percent month-over-month, which may go back up next month as closed sales are a lagging indicator due to a traditional 30-day closing. These statistics indicate that a reduction in mortgage rates is moving buyers back into the market. With that stated, the median days in MLS continued to climb 31.25 percent to 21 days, a 90.91 percent increase year-over-year.
The attached market experienced some of the largest swings in data. As one of the most watched segments of the market due to higher HOA dues, along with increased taxes and insurance premiums, some associations have adjusted their deductibles to help offset costs, but those changes have, in turn, made lending more difficult. As a result, this segment has become more challenging to put transactions together. Active listings at month’s end stayed almost unchanged, with a 0.40 percent increase month-over-month to 3,227 homes, a 70.92 percent increase year-over-year. Median days in MLS also rose year-over-year at a sharp rate of 136.36 percent to sit at 26 days. More telling is the drop in median close price month-over-month to $396,350, down from $415,000 last month and $418,000 at this time last year.
Meanwhile, the detached market experienced a 50.85 percent increase in active listings at month’s end with 7,497 homes. New listings fell slightly by 0.99 percent, while pending sales increased to 2,836. The median close price stayed stable at $650,500, down 0.69 percent from last month and up a mere 0.08 percent from last year. Median days in MLS climbed to 19 days.
“Generally, there does not seem to be a large sense of urgency for buyers or sellers,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Buyers continue to watch the homes that have come up in their searches and may even be tempted to take a look. However, they aren’t placing offers on homes unless it perfectly aligns with their wish list. The DMAR Market Trends Committee has noted that transactions falling out of contract are on the rise. This may be due to buyers getting cold feet, the rise in contingent offers, lending issues or bullish sellers unwilling to negotiate inspection items.”
Our monthly report also includes statistics and analyses in its supplemental markets that include properties sold for $1 million or greater, properties sold between $750,000 and $999,999 and properties sold between $500,000 and $749,999.
Activity in the $1 million+ market saw a slight uptick from July of new listings for homes over $1 million, an increase of 3.08 percent. Pending sales decreased by 3.06 percent, which is typical this time of year as buyers pause to enjoy the end of summer and get kids back in school. The median days in the MLS remain 20 for attached and 26 for detached. The close-price-to-list-price ratio held steady at 97.80 percent. The price-per-square-foot for detached homes increased 1.90 percent month-over-month, whereas the price-per-square-foot for attached homes decreased 1.81 percent; however, up 7.84 percent from July 2023.
Year-over-year, August saw an increase in both pending and closed home sales for detached homes, while the attached market experienced a decrease in both closed and pending, reflecting a broader market trend. Inventory is increasing for attached and detached homes, though detached homes remain less volatile than attached. Year-to-date, the sales volume of detached homes over $1 million is 13.02 percent higher than in 2023 and 114.05 percent higher than in 2021. Attached homes sales volume has decreased by 27.76 percent from 2023 and a 64.04 percent increase from 2021.
“Buyers feel no rush to make a move,” commented Amanda Snitker, DMAR Market Trends Committee member and Metro Denver Realtor®. “Mortgage rates have less impact at this price point above $1 million than other sectors of the market, although the declining rates are still providing some relief. The fall months tend to be a slower part of the year historically, so we expect the market to remain sluggish through the end of the year, providing buyers willing to take the plunge favorable opportunities. Sellers in this price segment must be patient with the timeline and practical when pricing their homes.”
Homes priced over $2 million have the highest months of inventory of any market segment. Although inventory slightly improved for both attached and detached homes month-over-month, it remains above the six-month threshold, indicating a buyer’s market.
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