Denver Real Estate Market Update August 2021!

Denver Real Estate Market Update August 2021!

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The quote of the month may be “Easing back to Normal” in the housing market as our predictions for more balance is beginning to show itself in the housing market! 

• The numbers for July are supporting this, as our Active Inventory at the end of July was 4,056 and topping the 4,000 mark for the first time since October 2020! 

The Market has probably peaked for New Listings this year and will begin to decrease the number of new listings each month for the rest of 2021. The Big Question for the market is will the Buyers Increase their activity in our Fall Market after Labor Day?  This is an excellent time for Buyers to reengage and find that first or next home as Inventory increases, and Interest Rates are still historically low!  The rest of the July numbers also showed some Buyer Fatigue and Seller Apathy in July as New Listings were down 6.5%, Pending Sales were down 9.8% and Closed Homes were down 21% in July 2021 vs July 2020! Closings YTD are still well ahead of last year, and this market is still very healthy, especially the Luxury Market!  

The bottom line is, we still have very low Inventory and very high demand. The Big Question we are looking to answer:  Was this slowdown simply a Summer Lull or is it a New Trend? If I am a Buyer that still needs a home and a roof over my head, then I would start looking at homes today! You have a better chance to get the home you need right now than you have had all year!  If I am a Seller that needs to sell a home, then I would get going soon, as many Buyers will be looking as the Summer ends and they want a home before the weather changes!

Now is definitely the time to focus on pricing homes correctly as we may not see as many multiple offers, we may see longer days on the market, and not as many offers as we saw the past few months! 

• The Average Price of a Single Family Home was at $699,795 in July, with Condos/Townhomes holding an Average Price of $442,949! These prices surely don’t feel like a market shift at all, but we are starting to feel those soften as seen by the Average Single Family Home Price declining in July!

• The Luxury Market is the biggest reason for Average Prices increasing so much in 2021!  The Luxury Market above $1M Closed on 2,500 homes the first six months of 2021, while the first six months of 2020 only Closed 1,050! 
• That is a whopping 138% Increase in the number of Luxury Homes Closed, while the Volume for Luxury Homes Closed for the first half of the year is almost $4Billion vs only $1.5B in 2020! 

• Active Inventory increased to 4,056 detached and attached residential homes, which is up 29.92% over the previous month but still 37.11% lower than this time last year! 
• Pending home sales in July were down 4.88 % from June and also down 9.87% from last year! 
• Closed homes in July were down 12.30% from June and also 21.33% lower than last year!

There is no better time to list your home and take advantage of an unprecedented Seller’s Market! With interest rates near all-time lows there are opportunities for Buyers as well with the right strategies!

The Market is moving differently in certain parts of town, but much of the Buyer demand has been moving in the suburbs, Douglas County, the Foothills and the Luxury Market!  Low Interest rates continue to help drive the demand! 

Please let me know if you have any questions or would like any more specific information, feel free to forward our market update to everyone you know and spread the word that real estate is open for business!