The Denver housing market is growing stock, however demand continues to drive costs larger | Colorado

(The Center Square) – The Denver housing market increased its inventory nearly 30% in the last month, but experts say that won’t be enough to shift the market in favor of homebuyers.

According to the latest monthly market report Denver’s housing stock is still 37% lower than last year, according to the Denver Metro Association of Realtors (DMAR). Meanwhile, the average home sales price has risen by almost 17%.

The average sales price of $ 625,000 was down 2.4% from the previous month, according to the report. The average home price was $ 540,000 in July, a 0.92% decrease from June.

Despite the slight price declines, economists like Lawrence Yun of the National Association of Realtors don’t expect the trend to last long.

“On a broad scale, there is no risk of home prices falling due to shortage of inventory, but I expect prices will rise more slowly through the end of the year,” Yun said in a statement.

Overall, according to the report, inventory increases between June and July are not uncommon. What makes Denver’s market unique, however, is that it squeezes both ends of the housing spectrum together.

DMAR’s Luxury Market Report for July shows strong sales of high-end real estate, with sales up 108%. But in most cases, buyers still pay more than sellers charge.

The report also shows that luxury buyers pay an average price-to-list price ratio of 101.3% and 103.4%, respectively, for attached and detached properties.

The odds for non-luxury homes are higher as buyers, according to the data, pay 104% of the asking price for single-family homes and 105% of the asking price for apartment buildings.

“Buyers face more difficult decisions every day,” said Jenny Usaj, member of the DMAR market trend committee, in a statement. “If you don’t go higher, can you sleep at night? Can you sleep at night if you go over the list price? Historical financial data are the basis of many real estate decisions, but feelings in this market and feelings cannot be calculated either. “

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