Good News for Home Buyers as Activity is Down But Prices Continue to Rise
As we head back into somewhat chartered waters, homebuyers face less severe competition. August's DMAR report shows 21.33% fewer homes sold in July 2021 compared to July 2020 and 9.98% fewer homes went under contract. It is typical to see a seasonal slowdown in buyer activity as we transition from June to July.
According to DMAR, a slight increase in the number of homes for sale from last month and a decrease in the number of homes that went under contract gives buyers "more time to review properties and less competition on offers overall. With continually low-interest rates and less competition, fatigued buyers may start to reenter the market."
However, even with fewer multiple offer situations occurring, affordability remains a major issue facing our city and state. In a recent Westword article, they determine that affordability has never been worse in Colorado. The July median home sale price was $540,000, up $80K from July 2020. The typical home was on the market a meager nine days, down from 25 last year.
A quick look at what happened in July:
- Denver metro's active listings available at the end of the month declined by 37.11% over last year
- The July median sale price was $540,000, up 17.39% compared to last year
- The average home spent nine days on the market in July, 16 days less than the same time last year
- The average price of a single-family detached home is currently $699,795 an increase of $98K from the same period a year ago
July's Numbers Over the Years:
|Avg. Days on Market||
Avg. Sold Price: Single Family Home
|Avg. Sold Price: Condo||# of New Listings||# of Homes Sold||# of Homes Pending||
Avg. Sold Price Change YOY
+ 4.27 %
+ 9.27 %
+ 16.4 %
Average Interest Rates by Year in Denver
|Average Interest Rate||5 %||4.7 %||4.4 %||3.6 %||4 %||4.2 %||3.8 %||3.7 %||4 %||4.6 %||3.9 %||3.1 %|
Data courtesy of Megan Aller | First American Title
During these unprecedented times, Usaj Realty would love to carefully assist you with finding your next place to call home, or selling your current property. Our acumen, attention to the market, and negotiation skills will all go to work in order to advocate for your goals. Email us at email@example.com or call 720.398.2999. We measure our success by the happiness of our clients!
Headlines: What's Happening in Colorado
Home Affordability in Denver and Colorado Getting Worse
"The real estate scenes in Denver and Colorado as a whole continue to send mixed signals. Earlier this month, the Denver Metro Association of Realtors highlighted data suggesting that the local market could plateau soon, even as the average price for a single-family detached home hit another record high. And now, a new report from the Colorado Association of Realtors cites rising inventory and more pricing flexibility — yet affordability figures have never been worse."
Metro Denver Home Prices Set Another Record, and Rents on Rise, Too
"Metro Denver broke a 20-year-old record for annual home price appreciation in April, and it only took a month to break that new record, according to the S&P CoreLogic Case-Shiller home price index.
Denver’s home price index rose 16.2% year-over-year in May, surpassing April’s record 15.5% gain. The national index’s 16.6% annual gain in May also represented a new record and surpassed April’s 14.8% gain."
DMAR Real Estate Market Trends Report | AUG. '21
"While still in a robust seller's market, the July 2021 report indicates that as we head into fall, buyers will start to have more time to review properties and less competition on the number of offers overall. The July residential real estate market reported an increased inventory of 29.92 percent, while it also represented a decrease in closings of 12.30 percent compared to the previous month, indicating a supply increase and demand decrease."
Headlines: What's Happening Nationally
The State of the Nations Housing 2021
"Even as the U.S. economy continues to recover, the inequalities amplified by the COVID-19 pandemic remain front and center. Households that weathered the crisis without financial distress are snapping up the limited supply of homes for sale, pushing up prices and further excluding less affluent buyers from homeownership. At the same time, millions of households that lost income during the shutdowns are behind on their housing payments and on the brink of eviction or foreclosure. A disproportionately large share of these at-risk households are renters with low income and people of color. While policymakers have taken bold steps to prop up consumers and the economy, additional government support will be necessary to ensure that all households benefit from the expanding economy."
Baby Boomer Migration Tilts Toward Las Vegas, Tampa And Phoenix
"Baby Boomers are the wealthiest generation of Americans alive today, and while some may no longer be active in the housing market, plenty are still looking to buy homes.
But where are Baby Boomers looking to buy? To answer this question, LendingTree analyzed mortgage purchase requests made in 2020 on the LendingTree platform across the nation’s 50 largest metropolitan areas."
Property Investors Are Exacerbating Supply Shortages in a Majority of the Largest U.S. Metro Areas
"Across the U.S.’s red-hot competitive housing market, real estate supply shortages are being exacerbated in a majority of the largest cities by property investors, according to a report released Thursday by realtor.com."
Report for July 2021:
Read Denver Metro Association of Realtor's full report on last month's Real Estate trends and statistics in Denver here.
And as always, please let us know if you have any questions!
Whether buying or selling, Usaj Realty is dedicated to helping you stay competitive. Your Usaj Realty broker will communicate effectively, learn your goals like the back of their hand, and work closely with you to negotiate the best terms possible, and expertly manage your transaction from start to finish, ensuring peace of mind.
Email us at firstname.lastname@example.org or call 720.398.2999
Posted by Jennifer Black
Jennifer Black champions all of Usaj Realty’s marketing publications. With a passion for digital marketing, graphic design, writing, and all things creative, Jennifer excels in the office as a crucial support staff member for our brokers and management Originally from Redwood City, California, Jennifer pioneered her way to Denver and began working for Usaj Realty in May of 2014. She loves every minute of life in Denver, which is directly enhanced by her time designing for Usaj Realty. Away from work, Jennifer enjoys escaping to the great outdoors, going skiing, hiking, and exploring local breweries and restaurants.Facebook LinkedIn Twitter