Housing inventory increases to the highest level in four years giving homebuyers more selection, and signaling increased days on market and a slowdown in the rate of price growth.
Housing inventory in the residential market hit a four-year high year to date in August with a total of 8,228 homes on the market, up 11.79 percent from last year.
“Over the past four years, we’ve experienced the strongest sellers’ market in recorded history,” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Metro Denver REALTOR®. “This past month, we saw available homes for sale increase to the highest level in four years giving buyers more homes to choose from.”While conditions continue to favor the seller, subtle shifts in the metro-Denver real estate market signal a slowdown in the rate of price growth and an increase in days on market, according to Danyliw. He adds, “Even though buyers have something to smile about, market conditions still favor the home seller and the next few months should see increased activity as buyers try to find a home for the holidays.”
The condo segment of the market is driving the overall increase in active listings, up 22.07 percent year over year. The number of sold listings in the entire residential market decreased by 6.78 percent compared to the previous month, and 11.48 percent from last August. Year to date, 38,422 homes in the Denver-area have sold, down 2.33 percent from last year.
The most active price segment in August for the single-family market was the $300,000 to $399,999, and $200,000 to $299,999 for condos.
Danyliw assesses that more signs of cooling can be seen with months of inventory increasing to 1.68 for single-family homes, compared to 1.59 months in July. Condo inventory increased to 1.48 months, compared to 1.33 months in July. In the single-family home market, the average sold price decreased 0.38 percent month over month to $525,346, while the median price decreased 1.11 percent to $445,000. The year-to-date average single-family home sold price stands at $525,905, up 9.55 percent from last year, with the median sold price was at $446,000, up 8.78 percent year over year. Condos continue to outperform single-family homes with the year-to-date average sold price of $351,318 representing an 11.41 percent increase over last year. The median price of condos sold also increased by 12.53 percent to $299,900.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999) and “Premier Market Report” (properties sold between $500,000 and $749,999). In August, 191 homes sold and closed for $1 million or greater – down 11.57 percent from the previous month and up 31.72 percent year over year. The closed dollar volume in August in the luxury segment was $289,495,644 down 5.73 percent from the previous month, and up 26.02 percent year over year. Notably, year to date in August, the Luxury Market exceeded $2 billion in sales volume for the first time on record, up 29 percent from last year.
The highest priced single-family home sold in August was $6,750,000 representing four bedrooms, seven bathrooms and 7,704 above ground square feet in Larkspur. The selling agent is a DMAR member. The highest priced condo sold was $3,500,000 representing three bedrooms, four bathrooms and 3,336 above ground square feet in Denver. The listing and selling agents for the condo transaction are DMAR members.
“The general consensus amongst colleagues is that many luxury homes across Metro Denver have experienced price reductions and are spending more days on the market,” stated Bryan Facendini, DMAR Market Trends Committee member and metro Denver REALTOR®.
The assessment is reflected in DMAR’s August market trends report findings as 37 percent of luxury home sales incurred a price reduction, the close-price to list-price ratio of luxury homes decreased nearly half a point to 97.05 percent, and the median days on market increased by ten days from 17 to 27.
In the luxury condo market, the average sales price increased 28.58 percent over the prior month and 7.95 percent year over year, while inventory moved much quicker at a median of 14 days on market compared to 27 days in July. For the luxury single-family home market, months of inventory held steady at 5.1.
This report is provided by Denver Metro Association of Realtors