Diagram: Axios Visuals. Data: REcolorado / DMAR
The latest data from DMAR shows that while the Denver housing stock is still historically low, both inventory and new additions rose significantly in June compared to May.
Why it matters: Denver buyers have faced an all-out bid war for the past six months. Any relief, no matter how temporary, will give you a little extra strength.
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According to the numbers:
Inventory increased 50.5% from May to June 2021. Compared to the previous year, it is still about 50% lower.
New entries were up nearly 24% month on month.
The average closing price in June 2021 was $ 643,645, up 26.8% year over year.
The median closing price was 545,000 US dollars.
Listings spent an average of 10 days on MLS in June 2021 and went off the market 60% faster than in June 2020.
What it means: Experts see less extreme bidding warfare, and buyers are more likely to be able to buy something at list price.
Yes but: These trends – more listings and stocks, slightly lower demand – are typical of this time of year.
Libby Levinson – broker associate at Kentwood Real Estate and a member of the DMAR Market Trends Committee – said the hotter it gets outside, the cooler the demand gets. Buyers who compete unsuccessfully for most of the year will be burned out.
“For me, next spring will be a sign of a real shift when there is another big spike in inventories,” she said.
At this point, Levinson predicts that mortgage rates won’t be quite as low and that sellers will have to come down to meet buyers’ more limited budgets.
The bottom line: It will be a few more months, if not longer, before the scales tip in favor of buyers. But buyers who are still looking will likely have an easier time than last year.
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