With a 68% increase in available inventory from July of last year, the close-price-to-list-price ratio is the lowest it’s been since July 2020.
According to the July monthly real estate trends report from the Denver Metro Association of Realtors, the close-price-to-list price is 99%, down from 99.6% in June and 99.9% in July 2023.
The median close price dipped slightly from $601,000 to $600,000, but prices continue to rise compared to the median close price of $590,000 last July.
The number of active listings climbed 3.6% from 10,214 in June to 10,584 in July, up 68% from 6,299 in July 2023.
July’s average number of active listings from 1985 to 2023 is 15,502. The record high for the month was 2006, with 31,989 listings. The record low was 4,056 in July 2021.
The historical average increase in active listings from June to July is 5.4%. This year’s 3.6% increase represents a slower-than-anticipated increase, signaling the metro area’s seasonal inventory peak is near.
The Denver area real estate market typically slows in July, but this year has been unpredictable, Libby Levinson-Katz, chair of the DMAR Market Trends Committee, said in the report.
The Denver market continues to move to a balanced market with 2.9 months of inventory.
“I’ve recently heard realtors express that we are shifting into a buyer’s market,” Levinson-Katz said.
“This is hard to define as the pandemic turned some of our steadfast rules of what constitutes a seller’s market versus a buyer’s market on their head.”
However, she said the increased summer inventory gives buyers more negotiating opportunities. “It provides the opportune time to find a new home before prices go back up.”
According to the DMAR report:
- Closed home sales of 3,708 were down 5.2% from 3,911 in June and 4.7% from 3,890 in July 2023
- Median days in MLS hit 15 days, up 15.4% from June and 66.7% from 9 days in July 2023
- New listings of 5,152 were down 11.6% from 5,827 in June but up 7.6% from 3,735 in July 2023
- Pending sales of 3,896 were down .2% from 3,903 in June but up 4.3% from 3,735 in July 2023
Luxury home sales slow in July
In July, there was a significant slowdown in luxury real estate activity for properties priced above $1 million.
Sellers with properties listed for more than $2 million face intense competition, with 16.5 months of inventory for attached homes and 7 months for detached homes. The median number of days on the market jumped by 50% over June to 15 days.
“For buyers, this is great news,” said Colleen Covell, a market trends committee member and realtor at Mile Hi Modern.
“This summer, buyers in the $1 million+ range have the greatest number of homes to choose from and the least amount of competition in years. With many sellers offering concessions to help with rate buy-downs or closing costs, buyers can find great deals, even with higher interest rates.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
