Market Insights by DMAR:
• As home and property values continue to rise in Denver, we can anticipate the next 10 years of growth to expand into peripheral neighborhoods that are already seeing steady changes such as Regis, Chaffee Park, Sunnyside, and West Colfax.
• National pending home sales dipped modestly in July, noting two consecutive months of declines, according to the National Association of Realtors®.
• Higher construction costs and supply shortages have led to significant price growth for new construction homes, which in turn is giving many prospective buyers sticker shock. A decline in the buyer traffic index is partly to blame for August’s 13-month low in builder confidence according to the National Association of Home Builders.
• The average home size rose from 2009 to 2015 as entry-level new construction was constrained. Home size declined between 2016 and 2020 as more starter homes were developed. Going forward we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes in the post-COVID-19 environment, per the National Association of Home Builders.
• Average active listings for August is 16,243 (1985-2020).
• Historically, we see an average decrease in active listings from July to August of 0.46 percent. A decrease of 11.69 percent in 2021 represents a larger month-over-month decrease and the second largest on record.