The Denver Metro Housing Market experienced an historical record-breaking performance during the first six months of the year. Record low number of homes for sale and a record high average sale price for detached single- family homes. As we progress through Summer, there are signs of moderation and a mild retracement from the June market highs. For the second month in a row the inventory homes for sale jumped significantly from record lows in May. Homes continued to sell at a brisk pace. However, the intensity of the buyers to compete for homes showed significant signs of moderation in some areas. Market statistics reflected a significant increase in the number of active listings at the end of July, an increase of 34.67% in the number of active detached single-family listings at the end of July compared to June. However, the 4,056 homes (detached and attached) available for sale at the end of July was still 37.11% below the number in July of 2020. The estimated 15,000 homes for sale required for the market to even approach a balanced market is no-where on the horizon. We remain in a strong seller’s market. However, bidding wars are no longer automatic. Sellers who are too aggressive on their list price may find themselves forced to reduce their list price. Continued low mortgage rates combined with high migration of home buyers to the Denver Metro Area will continue to fuel a strong market. However, affordability limitations and buyer fatigue may be moderating factors for the remainder of the year.
- Number of available listings (detached and attached) at the end of June decreased by 37.11% in a year over year comparison.
- Number of homes Sold (closed) decreased 21.33% in a year over year comparison.
- Number of homes Sold (closed) decreased 12.30% from June.
- Number of homes placed under contract (pending sale) decreased 4.88% from June
- Average Sold price decreased 2.43% from June and increased 16.40% in year over year comparison. The average sale price for a detached single-family home decreased to $699,795.
- Essentially a three-week supply of homes for sale exists in our market (more than five months of inventory is considered a buyer’s market.)
- Median days on market (4) remained unchanged from June. Bidding wars remain a strong possibility but are no longer automatic in some neighborhoods.
- The average detached home sold in June for 104.56% of the list price.
- Mortgage rates remained very favorable in a range of 2.75 to 3.15%
- Forward looking data for the remainder of the year suggests some moderation from a very robust seller’s market. However, historically market conditions remain very favorable for sellers.
- The continued healthy demand for homes, limited supply of homes for sale and the projection for continued low mortgage rates indicates a likely continuation of favorable market conditions for the remainder of 2021. However, normal seasonal factors and some buyer fatigue may be more evident as we approach Fall than in recent years. As demonstrated by the dramatic increase in homes for sale from a record low, market conditions can change quickly. If a move is in your plans for 2021 now is an ideal time to discuss home preparations and a timeline for selling in 2021. Market conditions vary from neighborhood to neighborhood. Contact me today for an update on the value of your home.
Below is a Denver real estate market snapshot based on July 2021 Statistics from DMAR Market Trends *
This information is for the Denver Metro real estate market. Real estate market activity varies from neighborhood to neighborhood. If you would like an instant real estate activity report for your neighborhood click Market Report or call Tom Gross for more information.
Questions? Let’s talk – contact us anytime to discuss your questions, plans, or the current value of your home. If a move is in your future now is an excellent time to discuss home preparations and a timeline for your move.
*Stats & Trends provided by Denver Metro Association of Realtors for 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson & Park All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Kentwood Real Estate shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. SOURCE: DMAR Market Trends | JULY 2021