DMAR Real Estate Market Trends Report | JUL. '24
July is traditionally the time of year when the Denver real estate market takes a bit of a break. However, the market has been unpredictable this year. Statistics indicate that Denver Metro is 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 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. Fewer sellers listed their homes in July, while the more significant trend continues to showcase that not all homeowners are married to their historically low interest rates. This increased competition may take the Denver Metro market back to a landscape where home prices increase as multiple buyers bid on the same homes. Buying now allows for a thoughtful search with room for negotiation and a refinance at a later date.
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 to161 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.
“The adage in Denver is that if you don’t like the weather, wait 15 minutes, and that advice rings true for many sellers, as patience might be the key to finding the right buyer,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Amazing properties can languish on the market, while unremarkable homes sell immediately, leaving many to question what is happening.”
Buyers, aware of the rise in inventory, have been negotiating as close-price-to-list-ratio is the lowest it’s 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.
Continued Levinson-Katz, “I’ve recently heard Realtors® express that 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. 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 can 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.”
DMAR’s 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 wilted under the July heat. New listings fell 24.35 percent for detached homes and 23.4 percent for attached homes. Pending sales declined 0.4 percent overall, while closings dropped 10.35 percent for detached homes and a more significant 32.35 percent for attached homes. Homes that did close sold, on average, for 97.85 of their list price.
This deceleration in activity resulted in a dramatic increase in available inventory. Sellers with homes listed at $1.5 million and above are experiencing the toughest buyer’s market in years. Homes over $2 million faced the most extreme competition, with 16.5 months of inventory for attached homes and 7.04 months for detached homes. Homes priced between $1.5 million and $1.99 million did not fare much better, facing 7.5 months of inventory for attached homes and 4.8 months for detached homes. The median number of days on the MLS for luxury homes increased by 50 percent month over month to 15 days.
“For buyers, this is great news,” commented Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “This summer, buyers in the $1 million+ range have the greatest number of homes to choose from and the least amount of competition in years. With many sellers offering concessions to help with rate buy-downs or closing costs, buyers can find great deals, even with higher interest rates.”
Despite the gloomy seller data, the $1 million+ market still saw a slight appreciation in price year over year, up 0.54 percent increase in detached homes at $369 per square foot, and 1.86 percent in attached homes at $547 per square foot.
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