Metro Denver’s housing market slowed in July, with closings declining from June and stock of available housing remaining scarce but growing at a record rate, according to the Denver Metro Association of Realtors’ monthly Market Trends Report.
Buyers closed 5,820 metropolitan area homes and condos last month, down 12.3% from June and 21.3% from July 2020. The stock of homes for sale at the end of July was 4,056, an increase of nearly 30% compared to June.
“As trends move away from a hot summer market, one question is on everyone’s mind: Will prices plummet?” Said Andrew Abrams, chairman of the association’s market trends committee, in the comments on the report.
The median price of a single family home sold in July was $ 600,000, which was the median price in June and a 20% increase from last July. The average closing price was $ 699,795, down 3.5% from June but up 17.2% year over year.
The average price of a condo or townhouse sold in July was $ 381,250, up 0.8% from June and 14.5% year over year. The median condominium and townhouse sales last month was $ 442,949, up 1.6% from June and 15.2% year over year.
Single-family listings spent an average of eight days in the market last month, while condominium and townhouse listings spent 12 days. On a tenth of the closings last month, sellers cut prices compared to a quarter of the closings in July 2020.
A typical year in the Denver metropolitan area has active listings up 3.1% between June and July. But this year’s 29.9% monthly increase is the largest ever for July, according to the report. However, the average in July was 16,302 active entries, so the supply is only a quarter of the historical level.
The tight supply should keep a dramatic drop in prices in check, argue Abrams and others.
“On a broad scale, there is no danger of home prices falling due to shortages of inventory, but I expect prices will rise more slowly through the end of the year,” said Lawrence Yun, chief economist for the National Association of Realtors, predicted last month.
Yun said he expected house price hikes to rise in line with income gains over the next year as more listings and newly built homes hit the market.