July Real Estate Market Show More Balance in Favor of Buyers
Metro Denver real estate market statistics for July 2022 shows a slight move to a more balanced state that favors buyers for the first time in months. The market is down 3.33 percent month-over-month, but it is still up 11.04 percent year-over-year, according to the Denver Metro Association of Realtors (DMAR).
The decrease in the “close price to list ratio” to 100.81 percent is one of the primary marks of a shifting market. Buyers are more particular about what they want and are now asking how much they may pay below the listing price. Sellers can no longer simply place a sign in their yard and expect their house to sell quickly and at substantially above the listed price. Most off the evidence points to the Denver housing market becoming more buyer-friendly.
In July, the number of month-end active listings climbed by 21.53 percent. The number of days a property was listed in the MLS grew by 30 percent. There are now approximately 2,000 fewer properties on the market now than there were three years ago, and the inventory reached an extraordinary peak in June and July during the past three years. Historically, the market does not reach its highest point until August or September.
Year-to-date, 7.18 percent fewer properties have closed on the market than the previous year. Even with fewer transactions, the Denver real estate market has transacted more than $1 billion in sales volume than the previous year, showing that prices have risen significantly. This is also reflected in the close-price-to-list-price ratio, which decreased from the previous month to 105.33 percent.
DMAR’s luxury market report also felt a seasonal cooling in July. New listings were down 22.13 percent, pending sales were down 18.16 percent, and closed homes were down 30.80 percent since June. There were 718 new luxury listings ($1 million or more) and 492 closings. The inventory is on the rise as well. Compared to last year, inventory has increased 39.05 percent, especially in the detached home segment of the market.
The months of inventory increased in July to 2.37 months for detached luxury homes and 3.31 months for attached. This shows that the attached luxury market is no longer a seller’s market compared to what it has been for the past two years. July saw the largest number of expired listings in the luxury market with 183, which is a trend toward a balanced market.
The average home price in Denver in July was $690,935, a record high. The average price for detached properties in July was $781,631, the highest on record. For attached properties, the median home price was $408,000, which is also the highest on record. More than a two-month supply of homes for sale now exists in the metro Denver market. More than five months of inventory is traditionally considered a buyer’s market.