More New Listings Helps With Demand
DMARs latest data show that while Denver’s housing inventory is still historically low, inventory and new listings were both significantly up in June compared to May.
Why it matters: Denver buyers have been facing all-out bidding wars for the last six-plus months. Any relief, no matter how temporary, will give them slightly more power.
By the numbers:
Inventory was up 50.5% from May to June 2021. It’s still down about 50% from last year.
New listings were up almost 24% month-over-month.
Average close price in June 2021 was $643,645, up 26.8% year-over-year.
Median close price was $545,ooo.
Listings spent an average of 10 days on MLS in June 2021, going off the market 60% quicker than in June 2020.
Fewer Bidding Wars
What it means: Experts are seeing fewer extreme bidding wars, and it’s more likely buyers will be able to buy something at list price.
Yes, but: These trends — increased listings and inventory, slightly lower demand — are typical for this time of year.
Libby Levinson — broker associate at Kentwood Real Estate and DMAR market trends committee member — said the hotter it gets outside, the cooler demand becomes. Buyers, who’ve been competing unsuccessfully for the greater part of the year, become burnt out.
“To me, a sign of a real shift will be next spring when there’s another huge jump in inventory,” she said.
At that point, Levinson predicts mortgage rates won’t be quite as low and sellers will have to come down to meet buyers’ more limited budgets.
The Scales May Tip to Buyers – But Not Yet
The bottom line: It’ll take several more months, if not longer, for the scales to tip in favor of buyers. But, buyers that are still looking right now will likely have an easier time than they have in the past year.