According to Metrolist, the number of home listings in July dropped 3% for houses and 4% for condos from June to July, adding stress to an already tight market. Perhaps partly as a consequence, sold properties were down 11% and 10% for homes and condos respectively over the same time period.
There was little change in the number of days properties spent on the market. Houses spent an average of 27 days on the market and condos 26 days.
One tiny glimmer of good news for buyers is that the average sold price for condos dropped from June to July – but only by 1%. Prices for houses remained the same as the previous month.
With the average price of a house at $382,300 and a condo at $224,000, many buyers who are coming from other states are finding themselves with a severe case of sticker shock.
“If you live here and own a house, it’s great news,” Tom Clark, CEO of Metro Denver Economic Development Corp., recently told the Denver Post. “If you are trying to come in from the Midwest or Texas, it’s a challenge…If the cost of living is as much as 30% more than what a person is used to, relocation can be complicated.”
Clark noted that construction of condominiums in the Denver area is lagging behind that of other states.
“Only 2% of our construction market is condominiums. In California, it is 20%. In most cities nationally, it is 22%. Condominiums would give you a price in between that single-family home and renting.”
Condo prices have risen 12% over a year ago, while home prices have risen 9%. With inventory remaining low, those prices are unlikely to ease any time soon for potential buyers.
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