Denver Real Estate in July: Sales Off 31.6% YoY, Inventory Up 81.5%
"Market shifting closer to a buyer’s market"
Every month I track about 35 local housing markets in the US, and I usually post several markets at a time. But this is worth noting. Sales in Denver were off almost 32% year-over-year in July, compared to down 23.6% in June. This early reporting market suggests existing home sales will be even weaker in July than in June.
Today, the Denver Metro Association of Realtors® (DMAR) has released their data for July, and sales declined sharply, and inventory increased significantly.
From the DMAR: DMAR Real Estate Market Trends Report
The data confirms that the Denver Metro area is no longer in a shifting market. Instead, it has shifted, and the real estate market is more balanced. …
Every indicator points to the market shifting closer to a buyer’s market. The month-end active listings increased 21.53 percent last month. Pending and closed deals decreased and days in the MLS increased by exactly 30 percent. However, the market is still far from what many experts would consider a buyer’s market. There are over 2,000 fewer properties on the market today than there were three years ago …
“Just as July gives us some breathing room to travel and enjoy our summer vacations, it brings buyers in the market some breathing room with longer showing windows, more time to consider making an offer, less competition and slowing prices,” said Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “Sellers, meanwhile, need to appreciate this shift in the landscape and adjust their expectations. Many homes are not going under contract in the first week, there will be under ask price offers and contingencies won’t be waived. Just like it used to be, pre-pandemic! All-in-all, a return to normal is on the horizon this year.”
DMAR reports total residential active inventory (detached and attached) was 7,361 at the end of July, up 21.5% from 6,057 at the end of June, and up 81.5% year-over-year from 4,056 in July 2021.
Although there are fewer homes on the market than three years ago, inventory is essentially back to normal in Denver. For the period 2014 - 2017, active inventory peaked in the summer at between 7,000 and 8,000 units.
Closed sales were at 3,010, down 31.6% from 4,418 in July 2021.
I’ll have data on many more markets soon.
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