Aug. 11, 2021
Barry Kunselman | 303.887.0588 |
Bidding Wars Slow in July As More Denver Homes Come to Market
The bidding environment in July was less competitive as home inventory saw a modest bounce back. The July residential real estate market reported an increased inventory of 29.92 percent, it also represented a decrease in closings of 12.30 percent compared to the previous month, indicating a supply increase and demand decrease.
"We all felt the deceleration. The last two weeks of June provided an opening for buyers squeezed out of previously purchasing properties through exceedingly tough competition. Offers were being accepted before the end of the weekend without the unprecedented terms that had become normalized in 2021.”
–Andrew Abrams, Chair of the DMAR Market Trends Committee and Realtor
July 2021 Denver Home Sales
- In July, the average price for detached, single-family homes dropped by 3.5% from $728,385 to $699,795
- Inventory was up by about 750 homes month-over-month. While this is good news for your buyers, there’s less than a month of inventory and prices are still up year-over-year by 17.2%.
- 10% of homes that closed in July were reduced in asking price before receiving an offer. These properties also spent around 27 days in the MLS while the overall average was just 8.
While the average closed price was 16.40 percent higher this July than July 2020 and July represented the lowest number of active properties at month's end in July’s history, with an inventory of only 4,056 properties, this number actually increased from June to July, reflecting the flow of the market.
While the numbers listed above represent the market, it may feel differently depending on which part of the city you are in. I'd be happy to compile the neighborhoods you're interested in learning about and email the numbers to you. Accompanying the statistics for each specific neighborhood is a detailed description of the area so you can see if that neighborhood sounds right for you. Let me know which neighborhoods you'd like and I'll gladly send them to you right away.
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BUYING YOUR DENVER HOME
Good news for buyers: we're seeing an uptick in the number of new listings hitting the market which will allow Buyers more time to review properties and less pressure. With more properties to bid on and more buyers possibly dropping out of the race, the market may shifting a bit away from its recent seller-friendly extremes, for instance buyers requesting contingency clauses. Buyers can offset rising home prices with still historically low interest rates.
Condominiums, or condos, can be great alternatives to detached homes. City dwellers, singles, couples, seniors, and many others may find condos that suit their needs and budgets. Others may simply prefer low-maintenance living. Buyers who feel ‘priced out’ of homes may discover condos offer an affordable homeownership alternative.
HOMEBUYER TIP: If you’re a serious buyer, now is the time. It doesn’t mean that we’re in a buyer’s market now. What I am saying is that as we have gone through the summers, buyers have started to say, “You know what. I’m not sure I want to do this.”
I want to go to a quote from Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors. He says, “Given that the sales activities are coming down, we may be sensing some turn in the market. We are seeing less prevalence of multiple offers, although it is still a seller’s market, no doubt.”
SELLING YOUR DENVER HOME
According to the Denver Metro Association of REALTORS, Some segments of the market are cooling, but only slightly. Some homes are not getting multiple offers in the first weekend; however, the buyers making offers are still going in strong, but they may not have to waive inspection or offer appraisal gaps to get the deal under contract like we were seeing in the early Spring.
“Still a seller’s market, but people need to be very cautious how they price theirhomes to attract buyers, knowing that these sales activities are declining somewhat, " Lawrence Yun, NAR Chief Economist
Overall, historical perspective in the Denver market indicates that an increase in inventory and a decrease in sales volume is not uncommon in the transition from June to July. With the relative lack of inventory, it can be expected that the balance between supply and demand will stay steady through the remainder of the year.
HOMESELLER TIP: If you’re thinking of selling your house but don’t know what you should buy, you have options.
Existing homes offer a wide variety of home styles, an established neighborhood, and lived-in charm. Meanwhile, new home construction lets you create your perfect home, cash in on energy efficiency, and minimize repairs.
Whether you’re looking for newly built or existing homes, both have their perks. If you’re ready to sell your house, let’s connect today to go over the perks of both existing and newly built homes to find out what’s right for you. Call/text 303.887.0588 or email me at barry@porchlightgroup.com!
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It's my job to help you and all of my clients make smart housing decisions. The stats are a phenomenal indicator of the Denver real estate market, but they're just the start. I'm happy to share my expertise to tell you the stories behind the numbers.
If you need to discuss the Denver market statistics above please don't hesitate to call/text 303.887.0588 or email me at barry@porchlightgroup.com!
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