Statistics from June are showing some welcome trends for the Denver Market. The biggest headline is the jump in inventory. Active listings are up nearly 35% from last year and new listings are up 7.4%. This means there is finally more supply in the market for buyers to choose from. Despite this bump in inventory, pricing has continued to trend upward, albeit at a very slow pace. What does this mean?
-FOR BUYERS – MORE CHOICE, LESS COMPETITION, MORE NEGOTIATING POWER
-FOR SELLERS – CONTINUED STRONG PRICING BUT LONGER MARKETING TIMES
When the inventory picture is viewed in light of current mortgage rates, now might be a great time for buyers who have been discouraged about the available choices and competition in recent years to take a fresh look at the market and their options. While homes prices have gone up, borrowing costs are much lower, making it more affordable to buy this year vs. last year at the same time.
It will be interesting to see if the boost in inventory translates to any price declines in coming months, or if attractive mortgage rates help stabilize pricing.
Here’s a quick Summary of the Denver market in June:
Home Sales : Down 8.3%
Average Sold Price: Up 4.5% YOY to $552,862
New Listings – Up7.46%
Days on Market – Up to 24 from 18 a year ago
More details and comparison with the metro area overall are below:
Home Sales – Metro Area vs. Denver
In June 5,635 homes sold in the 11-county Denver Metro Area, a -6.6% decrease from last June, but overall, homes sales are down just -0.1% year to date.
The number of homes that moved to Under Contract in June was 5.2% greater than last year. Throughout the month, contracts were placed on 7,062 homes. Year to date, homes placed under contract are up by 4.9%.
The City and County of Denver showed similar trends. In June 1,267 homes sold in Denver, a -8.3% decrease from last June, but overall, homes sales are up 2.2% year to date.
The number of homes that moved to Under Contract in June was 8.4% greater than last year. Throughout the month, contracts were placed on 1,582 homes. Year to date, homes placed under contract are up by 5.0%.
The average sold price of a home in the Metro Area saw a 2.6% increase in June 2019 and the median sold price increased by 2.8%. While price trends were still positive in June, the pace of price increases been on a downward trend through much of 2019.
Denver exhibited a bit more strength than the broader Metro area as the average sold price of a home in Denver saw a 4.5% increase in June 2019 and the median sold price increased by 2.8%. Similarly to the Metro area overall, pricing has shown a downward trend in 2019, even showing a slight decline in May:
Average Days on Market
In June, Metro Area homes spent an average of 23 days on the market – a 21.1% increase from June 2018. In Denver, homes spent 24 days on the market, a 33.3% percent increase from June 2018. However, in general terms, at less than 30 days, homes still are selling relatively quickly.
Nationally, 30 year mortgage rates are roughly 3/4 of a point lower than last summer.
Strong returns in the equity markets and Federal reserve indications of fed fund rate stabilization or lowering should continue to keep rates at very attractive levels. The lower rates mean that, despite the increase in average home prices since last year, the monthly payment on a 30 year loan would be less now than 1 year ago: