By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) Metro Denver’s residential real estate market is shifting to giving buyers more power than sellers.
Active listings at the end of July increased 21.53% compared to June, pending and closed deals declined, and days in the multiple listing service (MLS) increased by 30%, according to the Denver Metro Association of Realtors monthly report.
So far this year, 7.18% fewer homes closed than the previous year, but the market has done over $1 billion more in sales volume than in 2021, indicating how high prices have soared from a year earlier.
DMAR Market Trends Committee Chairman Andrew Abrams said metro Denver is far from a housing bubble because:
- Prices remain high
- Interest rates feel high even though they remain below historic norms
- The economy has taken a dip
- Buyer sentiment is down
“With all those uncertainties looming over potential buyers, a housing bubble should not be one of them because housing prices are based on supply and demand,” Abrams said. “Our supply is relatively low. People who currently own are not incentivized to move as their interest rate is most likely lower in their current house than it would be in a future one.”
The inventory of luxury homes — those listed for $1 million or more — increased 39.05%, with most of that in detached homes. It’s an indication that the luxury market is no longer an extreme seller’s market as the region has seen for the past two years.
“Just as July gives us some breathing room to travel and enjoy our summer vacations, it brings buyers in the market some breathing room with longer showing windows, more time to consider making an offer, less competition and slowing prices,” said Colleen Covell, DMAR Market Trends Committee member.
“Sellers, meanwhile, need to appreciate this shift in the landscape and adjust their expectations. Many homes are not going under contract in the first week, there will be under-ask-price offers and contingencies won’t be waived. Just like it used to be, pre-pandemic! All in all, a return to normal is on the horizon this year.”