The hot Denver housing market showed signs of cooling in July, according to recent REcolorado statistics.
In a market that has been characterized by record high prices and record low inventory for months, new listings rose 6% in July over June and 15% over July of 2014. Meanwhile, the average sold price dropped 2% in that timeframe, from $373,905 to 365,663.
“We’ve seen prices stabilize over the last several months, which suggests the market is finding more of a balance,” Kirby Slunaker, CEO of REcolorado, the largest Multiple Listing Service in Colorado, told Denver Real Estate Watch.
Anthony Real added: “Denver Realtors have been begging for an increase in housing inventory for the past 12-months and July was just what the doctor ordered.” Chairman of the Denver Metro Association of Realtors’ Market Trends Committee, Real was reacting to DMAR statistics, which were similar to ReColorado’s.
Interestingly, just as the Denver market shows signs of easing, housing markets nationwide are heating up, with prices in many areas dramatically rising. A recent National Association of Realtors study found that prices increased in 93% of markets in the U.S. in the second quarter of 2015 compared to the second quarter of 2014. Nineteen percent of those markets experienced double-digit increases.
Nationwide, the median existing home price rose 8.2% in that timeframe, to $229,400.
NAR Chief Economist Lawrence Yun attributed the change to steady rent increases, a slow rise in mortgage rates and stronger local job markets, all of which fueled demand. “While this led to a boost in sales prices not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”
The five most expensive markets, according to NAR’s study, were:
San Jose, Calif.: $980,000
San Francisco: $841,600
Anaheim-Santa Ana, Calif.: $685,700
Honolulu: $698,600
San Diego: $547,800
The five least expensive markets were:
Cumberland, Md.: $82,400
Youngstown-Warren-Boardman, Ohio: $85,000
Rockford, Ill.: $94,700
Decatur, Ill.: $96,000
Elmira, N.Y.: $98,300.
While potential Denver homebuyers will likely welcome the local cool down, at least one sign of the sizzling marketplace remains: Homes continue to sell with lightning speed. The average number of days a home spent on the market dropped from 20 days to 19 in July over June.
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