When the mercury rises, homes sales historically cool in the Denver area as buyershead for vacation destinations or take a break due to buyer fatigue. Thus, the summer slow-down comes as no surprise.
July's Chill Housing Stats
Call it the dog days of the housing market, where would-be home buyers choose to lounge at the pool instead of scour the city for their next home. This trend can be seen in the reduced amount of homes sold since last month (-14%) and the stagnation of the average home price (-0.5%). Despite the slower market, sellers are staying engaged with 7% more active inventory month-over-month.
More Denver Homes for Sale
Denver homes have been spending an average of 21% more days on the market (DOM) since this time last year. Given the ongoing expansion of DOM, the 28% boost in housing inventory since July of last year reminds us that the Denver real estate market is balancing. As illustrated by the July 2019 real estate market stats, the Denver Metro area's listing shortage pressure continues to ease. In fact, Metro Denver currently offers the highest number of active listings since October of 2013. Keep in mind that this number is still far below the record of 31,900 in June 2006. According to John Skrabec, owner of Live Urban Real Estate,
The fact that inventory is up needs to be kept in perspective. Denver is balancing, not experiencing a glut of home inventory.
An Interesting Real Estate Stat Twist
Despite the mid-summer slow down and the balancing housing market, homes spent 4% less time on the market as compared to last month. Live Urban's agents have noticed that buyers have been reinvigorated by low mortgage interest rates and that those house-hunting in the heat of the summer are very serious about their next step in home ownership, said Jana Miller, Managing Broker of Live Urban Real Estate. Based on the Federal Reserve's decision not to raise the Federal Funds rate, experts predict mortgage interest rates could continue to drop, further motivating more buyers to enter the real estate market. Our observers in the field have also noticed sellers adjusting to the balancing market with tempered sale price expectations - contributing to a smoother and (slightly) quicker selling experience.
Other Denver Real Estate News
- The average single family home in the Metro Denver area costs $547,461
- Overall home inventory has increased by 21% since last july, bridging the listing shortage gap Denver has struggled with in years past
- Last month, Denver was named the number 4 best place to live for the LGBT+ community
- Net migration in Colorado increased by 51,127 in 2018
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