Although the average close price for homes in the Denver-metro area has risen 14% year-over-year, we have seen the rise in prices stabilize the past few months with another 1% decrease last month. This is consistent with historical seasonal trends, where prices reach a peak and days on market starts to increase at the end of Summer. This is GREAT news, as it demonstrates that while the current Housing Market is unique and challenging, it’s still subject to the traditional market shifts. We can expect the housing market to cool a touch as Fall arrives later this month. Low inventory, however, will likely be a pressure point for many months ahead.
Inventory increased almost 30% last month in the Denver metro area. Coupled with a 12% decrease in closings, buyers are finally finding a bit of breathing room this month. With average days in the MLS still in the single digits, however, competition remains high. Those looking to purchase a home but have been anxious about the market may find luck this month as more homes are available to view. It’s not unusual for inventory to peak in July or August, but the dramatic 30% increase in inventory from June to July is noteworthy. Could this be a return to normal expectations for purchasing and selling homes? For now, we expect the Seller’s Market to continue throughout the year, but home buyers having more options is always a good thing.
While inventory dropped 20% between April to May, we’ve seen a 50% increase in active inventory between May to June, up to 3,122 at months end. The number of closed homes has also risen about 10% month over month. Both of these statistics are typical of the Summer months, where we see a larger number of homes on the market at a slightly higher price point. This increase in inventory and price usually lasts until about August or September, where we see inventory begin to decline again. 2020 and 2021 have been unusual years, however, so it’s unclear how typical of a pattern we will see this Summer season. Regardless, there will be a lot of homes hitting the market in the next few weeks, so if you are still looking for a home and need an experienced REALTOR® on your side, I would be happy to help!