Denver’s residential real estate market cooled in August — but that doesn’t mean buyers can heave a sigh of relief: Experts note that the slowdown is typical for the end of the summer.
In fact, the cooling off is relatively marginal. According to REcolorado’s August statistics, active listings of single family homes rose 2% in August over July, slightly easing what has been an exceedingly tight inventory. Meanwhile, the average sold price dropped 1%, from $365,663 in July to 363,625 in August, and the average time properties remained on the market rose from 19 days in July to 21 days in August.
Another study, by Realtor.com, also found a slackening of activity in Denver’s housing market last month. While Denver ranked as the nation’s second hottest residential real estate market in July, it dropped a notch to third place in August, falling behind the Dallas-Fort Worth area, which is number two and San Francisco, which tops the list.
Regardless of any slowdown, Denver buyers and renters continue to face one of the most expensive markets in the country. Those who have been feeling the price pinch won’t be surprised to learn that rents and mortgage payments are proportionately higher now than before the housing bubble.
Home buyers, however, fare much better than renters.
According to a recent study from real estate website Zillow, rent payments in the Denver area now average 34.3% of a person’s median income. This compares to an average of 23.4% in Denver between 1985 and 2000 and a current national average of 30%.
As for buyers, “A metro Denver buyer earning the median income purchasing the median-priced home with 20% down and borrowing the rest at current rates on a 30-year mortgage can expect the mortgage to eat up 21.1% of their pay,” notes the Denver Post. That compares to 15.1% of median income nationally.
As the temperatures outside drop in the coming weeks, Denver buyers and sellers can expect the real estate market to remain heated. “Any slight change, one way or other, feels more significant than it really is,” Anthony Rael, chairman of Denver Metro Association of Realtors’ Trends Committee told Denver Real Estate Watch.
Browse the newest Denver real estate listings below or click here to create your own search.