Home prices inch up as inventory reaches new highs
NOTES FROM THE FIELD | JUNE 2024
The housing market can't get its story straight!
On the one hand, home values have increased this year in the face of serious headwinds; on the other, the number of homes on the market is climbing fast and setting up for a potential softening in the back half of the year.
The median home price in the Denver Metro area reached $670K, up slightly month-over-month and year-over-year.
The number of active listings surged to 8,080, marking a 32% increase year-over-year and reaching the highest level since September 2022. After multiple years of anemic inventory, we're finally back to pre-pandemic levels (see graph below)!
Closed sales fell to 3,205 in June, down 7% from the previous year.
Homes stayed on the market longer, with days on the market rising from 7 days in May to 11 days in June.
At the end of June, we had 3.1 months of inventory, a level not seen since 2013. This figure is significant as it reflects both the number of homes for sale and the current sales pace. We'll be watching this in the months ahead!
(Note: traditionally, a 'balanced market' has been characterized by having four to six months of inventory.)
The housing market is like a game of musical chairs in which seats are added, but fewer people are scrambling to sit down.
Thanks for reading!