In the relentless race to find a home in Denver’s tight market, buyers can finally take a breath. July’s market report showed a slight slowdown in activity.
According to the Denver Metro Association of Realtors (DMAR), active listings rose 29.92% in July over June, bringing a welcome infusion of homes to the market. (The number of listings –4,056 – was still 37.11% less than July of 2020.)
Home prices dropped 2.43%, breaking a rising streak, while the number of closings fell 12.30% from June and 21.33% from last July.
Best of all for buyers, the bidding frenzy many have seen over homes appears to have died down. In July, 10% of closed transactions showed a reduction in the asking price before receiving an offer.
In sum, those searching for a home can relax a bit.
“Buyers will start having more time to review properties, and less competition on offers overall,” said Andrew Abrams, chair of DMAR’s Market Trends Committee. “With continually low interest rates and less competition, fatigued buyers may start to reenter the market. Knowing that one may not have to compete with other buyers on a house will greatly benefit first-time homebuyers and those who are unwilling or unable to put 20% down.”
While the July market report brought good news for buyers, sellers may have difficulty adjusting to the new reality. “Not all homes are getting multiple offers, multiple shows and over-list offers the first weekend,” notes the DMAR report. It advises real estate brokers to manage their sellers’ expectations.
The increase in inventory and decrease in sales volume “is not uncommon,” in July, noted Abrams. He predicts that the supply/demand balance will “stay steady through the remainder of the year.”
“The real estate market continuously changes,” Abrams added, “It appears that, for now, we are back to drawing within the lines. For buyers, this can be beneficial by having more normal expectations of what it takes to buy. For sellers with grandiose dreams of what their house could be worth, now is the time to come back to reality and use the data to help make an educated decision.”