After years of tight inventory and rising prices, the frenzied Denver housing market has begun to moderate, according to the Denver Metro Association of Realtors’ (DMAR) September statistics.
As reported in the DMAR’s monthly market study, active inventory—previously so tight that it hit record lows—reached a four-year high in September, up 7.04% over August and 16.10% over September 2017. Meanwhile, the number of sold homes decreased dramatically: 28.91% below August and 20.24% below September of 2017.
And if that’s not enough to show a cooling market, many listings saw significant price reductions, particularly in the luxury market.
“The housing inventory and home price adjustments are normal and expected,” said Steve Danyliw, chairman of the DMAR Market Trends Committee, in the report. “What’s not normal? Sales of single-family homes priced over $500,000 dropping 33% from August to September. For those sellers, that’s real turbulence.”
In fact, sales of homes worth $1 million or more fell 44.4% between August and September, according to the Denver Post.
Affordability is a key factor behind the September statistics, say experts. With the average sold price of residential property well over $400,000 in recent months, many buyers were stretching to afford down payments and mortgages. As mortgage interest rates inch upward, the problem has only magnified.
“[B]uyers, after years of coping with a lack of affordability, are now pulling back in a big way,” reports the Post.
Despite such reports, the city is maintaining its appeal nationwide. A new Wallet Hub study, for example, ranks Denver number 13 among the 30 best places to buy a home in the United States, as reported by the Denver Business Journal.
The study looked at 300 cities, judging issues such as “market attractiveness” and “economic strength,” including median home price appreciation, home sales turnover and job growth.
The market outside of Colorado that most interested Denver home hunters who were surveyed, reports WalletHub, was Seattle.