Denver Home Prices Decrease for Second Consecutive Month as Continued Demand Holds Inventory Levels Steady
According to the latest data from REcolorado, August saw a second consecutive drop in average sale price, while continued demand kept sales inventory levels steady. Even though prices have dipped the last two months, since 2012 prices have gone up an average of 41%. But we are now moving toward a more normal market for sales of homes.
The price of a Denver-area home saw a seasonal, month-over-month decrease in August. At an average of $403,245, prices were one percent lower than July; however, they are still up 12 percent as compared to this time last year. The average sale price of a single family detached home was $444,621, down two percent as compared to July and up 10 percent year over year. Increases in prices were seen for condos/town homes, up two percent month over month and up 14 percent year over year.
The pace at which sellers brought new homes to the market continued to slow as the busy summer selling season wrapped up. In August, 7140 new homes came on the market, down five percent as compared to July, but up four percent year over year.
Demand remained strong holding inventory levels steady. August ended with 8,769 active listings of homes for sale, down one percent as compared to July and down four percent as compared to this time last year. The supply of inventory for the Denver metro and surrounding area remained unchanged from last month, at seven weeks.
“The tight inventory levels and higher home prices we’ve seen throughout Colorado this year have not kept buyers out of the market,” said Kirby Slunaker, president and CEO of REcolorado. “Thanks to a strong summer season, sales are on pace with the levels we’ve seen for the last three years, and noticeably higher than levels we saw just six years ago.”
Home sales in August reached 5,427, up five percent from July, but down seven percent year over year. Year to date, home sales are just three percent lower than last year.
Notably, the market is seeing that appraisals are taking longer and, as a result, are causing widespread delays with home closings. The delays will likely decline when interest rates rise, as the rise will cause refinance appraisals to drop and buyer demand to lessen.
Let the Bandy team help you with all your real estate needs! We will guide you through all phases of the home buying and home selling process in Denver. Our home purchasing experts can show you terrific homes in Stapleton, homes for sale in Denver Highlands, and help you with buying real estate in Washington Park. Contact us for a no-obligation consultation and our trusted professionals will be there to help you every step of the way!
Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
720-466-3790
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