Inventory Up, Prices Down—What's Next?
The housing market is catching its breath.
In August, Denver's median home price dipped slightly to $660K—down from July but still up slightly from last August.
Inventory is up 23% year-over-year, marking the highest August level since 2014, a throwback to pre-pandemic times when buyers had more options and home sellers had to negotiate on price and concessions.
Well, those days are back at least for now.
The increase in homes for sale is due, in part, to more new listings (7% more than last August), but is mainly a result of homes taking longer to sell—averaging 19 days in August compared to just 7 in May.
Rates on a Tear
Mortgage rates have fallen more than 1% (100 bps) since April. As of this writing, a 30-year fixed-rate mortgage is at 6.2%.
The Federal Reserve lowered its policy rate this week by 50 bps, a turning point in the 4-year fight against inflation.
Mortgage rates do not follow the Fed funds rate. After the announcement on Wednesday, mortgage rates rose.
Despite lower rates and more selection, buyers aren't rushing back to the market. A mix of factors is to blame—an upcoming presidential election, economic uncertainty, and mortgage rate lock-in for existing homeowners.
We’re not in the same race we were in the Spring—things are slowing down, but maybe the market is finding its stride.
