Notes from the field | August 2024
The Denver housing market stayed steady in July. The median sale price for a single-family home held firm at $667,000, showing little change for the fourth month slightly higher than last year.
On the ground, the market feels shakier than the data suggests. Home sellers, on average, are more nervous than they've been for years. Seasonal market softening is converging with longer market times to create a build-up of inventory, which hit its highest level since 2014 in June!
On the ground, the market feels shakier than the data suggests. Home sellers, on average, are more nervous than they've been for years. Seasonal market softening is converging with longer market times to create a build-up of inventory, which hit its highest level since 2014 in June!
Listings and Sales
We saw 4,040 new listings in July, an 11% increase from last year. However, this was the second month in a row with fewer new listings than the month before. Sellers are starting to respond to market conditions, pulling back a bit.
Pending sales dropped to 3,144 from July, but were still 9.4% higher than July 2023. Closed sales followed a similar pattern, with 3,139 homes sold – down from June, but up 6.1% from last year.
Pending sales dropped to 3,144 from July, but were still 9.4% higher than July 2023. Closed sales followed a similar pattern, with 3,139 homes sold – down from June, but up 6.1% from last year.
Time on Market
Homes took a bit longer to sell, with the average days on the market doubling to 14 days. This suggests that while buyers are still active, they’re taking a little more time to make decisions.
Months of supply dipped slightly to 3 months. After increasing steadily since January, this small decrease indicates that while inventory is still available, it's not growing as quickly as earlier in the year.
Months of supply dipped slightly to 3 months. After increasing steadily since January, this small decrease indicates that while inventory is still available, it's not growing as quickly as earlier in the year.
Mortgage Rates and Market Sentiment
Mortgage rates provided a bit of excitement earlier in August, dropping from recent highs of around 7.5% to 6.5% after a lackluster jobs report. While the mortgage and real estate industries jumped on this news, buyers haven’t shown the same level of enthusiasm.
The recent dip in rates comes at a time when the stock market is wobbling and with an election on the horizon, which might temper buyer enthusiasm through the rest of the year.
Some in the industry have even joked about the disconnect, with real estate professionals posting about lower rates while feeling like they're riding a train through a post-apocalyptic world. As we head into fall and winter, typically slower months for the housing market, we might see things cool down further.
The recent dip in rates comes at a time when the stock market is wobbling and with an election on the horizon, which might temper buyer enthusiasm through the rest of the year.
Some in the industry have even joked about the disconnect, with real estate professionals posting about lower rates while feeling like they're riding a train through a post-apocalyptic world. As we head into fall and winter, typically slower months for the housing market, we might see things cool down further.
The recent drop in mortgage rates hasn’t sparked a rush from buyers, and with the usual seasonal slowdown ahead, the market may remain subdued as we move toward the end of the year.
We love helping people navigate complex real estate decisions. If you are considering a move, just hit reply and let's see how we can help get you where you're going!
Many thanks,
Jen and Chad
We love helping people navigate complex real estate decisions. If you are considering a move, just hit reply and let's see how we can help get you where you're going!
Many thanks,
Jen and Chad
