The Denver metropolitan area housing market continued to experience a major cold spell last month as home sales plummeted and the number of listings continued to soar. Monthly updates from the Denver Metro Association of Realtors.
There were 4,279 homes and condos sold in July, down 21.2% from June and down 31.6% compared to July 2021. The number of active listings increased 21.5% from June to 7,361, an 81.5% year-over-year increase. At the end of July, there were more than twice as many vacant houses as there were at the end of April.
Prices are also starting to fall in a more noticeable way. The median closing price for single-family homes sold in July was $650,000, down 3% from June and up 8.5% from a year earlier. As recently as April, the median sales price increase was 18.5% year-over-year.
The median closing price for condos and townhomes was $408,000, down 5.1% from June and still up 7.4% over the past year. Three months ago, condos were up 17.5% annually.
Listings are now taking an average of 13 days under contract, up 30% from June, but still fast. In the spring, it took an average of eight days to sell a product.
A rapid cooling caused by rising interest rates and massive home price hikes may have worried some buyers that the market is in a bubble that is losing air.
“These uncertainties loom over potential buyers because house prices are based on supply and demand, and the housing bubble should not be one of them. Relatively little… prices may drop and MLS days may increase, but it’s nowhere near a bubble.”
How tight is your inventory? Despite a significant increase over the past three months, it remains less than half of his end-July average of 15,971 listings from 1985 to 2021.
In the first seven months, 7.2% fewer homes and condos were sold than in the same period in 2021. But with home prices so high, sales volume has increased by more than $1 billion.
Market luxury, defined as properties sold for $1 million or more, are hitting the hardest brakes.
The classic market, defined as properties priced between $300,000 and $499,999, remains top notch. July sales were down 14.1% from June, pending sales were down 4.2%, and new listings were down 13%.