Denver area real estate market cools slightly in July with a 2.43% decrease in the average month-over-month price for both detached and attached homes. Despite this decrease, the market still shows prices are up 0.69% year-over-year for both segments.
It’s important to note that the average price of single-family homesDenver area real estate market has risen by 0.41% compared to the previous year, whereas condos and townhomes have experienced a more substantial increase of 1.73%.
Given the recent fluctuations in interest rates, it is essential to recognize that these changes have played a role in the decline of home prices in July, primarily due to the implications on affordability. Additionally, other factors, such as challenges related to inspections and property appraisals, have also contributed to the downward pressure on home prices.
As of July, the number of active listings totaled 6,229, marking a 3.77% increase from the previous month’s count of 6,071 active listings. When compared to July of the previous year, where the active listings amounted to 7,361, the current inventory is still down by 14.43%.
In July, the Denver area real estate market saw a total of 4,773 new listings, which was a decrease of 15.33% from the previous month and a substantial drop of 24.76% compared to the same month last year. The primary factor driving this trend is the disparity between sellers’ existing mortgage rates and the prevailing market rates, which results in sellers not wanted to sell.
Pending sales were down slightly month-over-month 4,079, which represent a 1.73% drop from June and 2.58% from last year.
Closed sales for July declined to 3,677 from June’s count of 4,395, representing a decrease of 16.34% and down 18.47% year-over-year. In comparison, last July 4,510 homes sold.
The key take away from this month’s Denver area real estate market update is that “It’s important to note that we still have a lack of inventory, and while demand is slowing, we are still in a seller’s market.”