Denver Real Estate Market Is Calming Down

Dated: 07/10/2015

Views: 644

According to the Denver Post Image title

Homes for sale in Aurora's Saddle Rock neighborhood in early June, 2015. (Steve Nehf, The Denver Post)

Buyers purchased a record $2.15 billion worth of homes and condos in the metro Denver area last month, but the frenzied pace seen earlier in the year is fading, according to a report Monday from the Denver Metro Association of Realtors.

The 5,695 homes sold in June represented a 10 percent increase from the number sold in May, while the number of active listings at the end of the month was also up 10 percent to 6,197.

Despite more homes available for sale, the average number of days a single-family detached home spent on the market fell to 25 in June from 28 in May. The number of days on market for condos fell to 18 from 20.

The average sold price for a single-family home increased 0.94 percent to $424,609 month-over-month, while the median price increased 0.84 percent to $362,000.

For condos, the average price declined 0.21 percent to $260,243, while the median price increased 1.28 percent to $217,999.

"There is a general feeling that things are cooling,"said Anthony Rael, chairman of the market trends committee of the Denver Metro Association of Realtors. "Things have been at such a frenzied pace, any sort of slowdown is noticeable."

One sign of tempering is that sellers are seeing fewer offers above list price for the hottest segment of the market, homes priced between $150,000 and $350,000.

Whereas a seller might have waited knowing that four or five strong offers above the list price might come in, now they are motivated to seal the deal once one or two show up, Rael said.

While the inventory of homes for sale remains abnormally low, the added supply appears to be giving buyers more negotiating leeway and helping to calm the market.

Higher home prices combined with slightly higher mortgage rates may also be pushing some buyers to the sidelines, reducing demand.

Clear Capital's home price index for metro Denver rose 1.7 percent between the first and second quarters. That remained the fastest increase out of 30 metro areas tracked by Clear Capital and nearly three times the national average.

But it was down from the 3.3 percent increase between the fourth and first quarters and Clear Capital is predicting metro Denver home prices will increase a slower 3.1 percent in the second half of the year.

Clear Capital, a real estate valuation firm based in Reno, Nev., predicts that San Francisco and San Jose, Calif. — areas that competed with metro Denver for the largest home price increases earlier in the year — will actually see home values decline in the second half of 2015.



Blog Signature

Denver CO Real Estate Jennifer Gaines REALTOR® specializes in matching people to homes and professional resale services in Aurora, Parker, Centennial and surrounding areas. While helping you find the home of your dreams or sell your home for top dollar, you’ll experience the ultimate customer service experience. Get the Gaines Advantage today and call or text me: Jennifer Gaines 303-906-8218   google.com/+JenniferGainesAdvantage

Blog author image

Jennifer Gaines

Welcome to my resourceful web site! I hope you enjoy all the features offered here. I am a Colorado native and have lived in S.E. Aurora for the past 15 years. I love all of the variety and the peop....

Latest Blog Posts

Your First Step in Buying a Home

Pre-ApprovaL:YOUR 1st Step In Buying A HomeIn many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to

Read More

Your First Step in Buying a Home!

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often

Read More

New Listing - Denver - Under $175,000

You will fall in love with this 2 bedroom condo located at5995 W Hampden Avenue, H14 in Denver.   Centrally locatedoff of Hampden between Sheridan and Wadsworth. This home has been

Read More

7 Signals The Home You Are Looking At Will Have a Solid Resale Value

While it might seem premature to think about selling a home before you even buy it, it's important to remember that a house is an investment. And in an ideal world, investments make&

Read More