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Sizzling Metro Denver Housing Market Showing Signs of Cooling

Real Estate

Sizzling Metro Denver Housing Market Showing Signs of Cooling

Metro Denver’s residential real estate market is showing signs of cooling. The August Denver Metro Real Estate Market Trends Report shows both the average and median prices have recently dropped and buyer activity has slowed as inventory reaches a higher level, which is likely due to Denver’s historic rise in home prices.

The median price for a home in metro Denver in July was $417,500, which was a 0.60 percent decrease from the previous month. Active listings in the residential market were at 7,643 total units in July, up 3.96 percent year-over-year. The number of sold listings decreased by 15.65 percent compared to the previous month and 8.54 percent from last July. The highest priced single-family home sold in July was $4,036,670 representing six bedrooms, five baths, and 5,424 finished square feet.

According to the Denver Metro Association of Realtors (DMAR), inventory in June was at a three-year high, and the climate is good for slowing activity and price reductions as fewer homes are considered affordable. Most market statistics point to a cooling market. Year to date, there have been 32,879 homes sold, down 2.16 percent from 2017. The condo market saw a small increase in average days on the market, increasing to 18 days compared to 17 last July. The most active segment for the single-family market in June was the $300,000 to $399,999, and $200,000 to $299,999 for condos.

In July, 206 homes sold and closed for $1 million or greater, down 16.26 percent from the previous month and up 17.71 percent year-over-year, according to DMAR. The closed dollar volume in July in the luxury segment was $291,278,026, down 24.22 percent from the previous month and up 7.15 percent year-over-year. It appears the seasonal peak for sales of homes priced over $1 million may have been June. However, with $1,951,165,664 in luxury home sales volume year to date, the metro Denver area will surely pass a record $2 billion this year.

Although there are no major new developments in the southern area’s housing market, sales continue to decrease while new listings decrease at approximately the same rate, thus creating a supply and demand market that will keep home prices rising for a while. According to one reliable source, home sales in the south metro region were down six percent month-over-month, which is still less than one percent over the past two years. Similarly, new listings hitting the market continue a steady albeit very slight decline as well, dropping just three percent compared to June 2017.