Home prices dipped slightly in August, while properties took longer to sell. But it’s too soon for buyers to uncork the champagne, as inventory also dropped, keeping the market tight and competitive.
The Denver Metro Realtors Association’s (DMAR) monthly report for August carried mixed news for both buyers and sellers.
In favor of sellers, inventory in the Denver-metro region dropped to a record low for August. The number of homes on the market decreased 11.69% from July, to 3,582 properties. This represents a 34.83% drop from August 2020 and is more than four times lower than the average number of active listings for August: 16,243.
Yet surprisingly, buyers had some news to celebrate, as well. Average prices for residential properties decreased slightly, by 1.09%, to $614,577. And homes spent 22.22% longer on the market, at 11 days.
Regardless, it remains a seller’s market overall. “Competition is tighter now than it was last month at this time,” reports Andrew Abrams, chair of the DMAR Market Trends Committee. And although the market traditionally slows from July to August as the school year approaches, it’s unclear whether this year’s August trends are simply seasonal, or part of a bigger picture, given the extremely low inventory.
In any case, Abrams offered advice for those currently in the market or thinking of getting in soon. Those planning to offer a home for sale in the next few months, he notes, should photograph their homes while the grass is still green and the snow has yet to fly. “You can use those green grass photos to show off what your house looks like in the summertime.”
As for buyers in tougher positions – “whether you have less money to put down, a contingent sale, or are needing a longer close” – Abrams suggests looking at properties that have been on the market longer than a week, “so you are less likely to have to compete to get the property under contract.”