(The Center Square) – Denver’s housing market increased its inventory by nearly 30% last month, but experts say it won’t be enough to shift the market in favor of homebuyers.
According to the latest monthly market report from the Denver Metro Association of Realtors (DMAR), Denver’s housing stock is still 37% below last year’s levels. Meanwhile, the average sales price of a home has increased by nearly 17%.
The average sale price of $625,000 represents a month-over-month decline of 2.4%, according to the report. The median price of homes stood at $540,000 in July, a 0.92% decrease from June.
Despite the slight price dips, economists like Lawrence Yun of the National Association of Realtors don’t expect the trend to last long.
“At a broad level, home prices are in no danger of decline due to tight inventory conditions, but I do expect prices to appreciate at a slower clip by the end of the year,” Yun said in a statement.
Overall, the report states, inventory increases are not uncommon between June and July. However, what makes Denver’s market unique is that it’s squeezing both ends of the housing spectrum.
DMAR’s luxury market report for July shows strong turnover of high-end properties with a 108% increase in sales. But, buyers are still paying more than sellers are asking in most cases.
The report also shows luxury buyers are paying close-price-to-list-price ratio averages at 101.3% and 103.4% for attached and detached properties, respectively.
The ratios for non-luxury properties are higher with buyers paying 104% of asking prices for single-family properties and 105% of asking price for multifamily units, according to the data.
“Buyers are facing harder decisions by the day,” Jenny Usaj, a DMAR market trends committee member, said in a statement. “If you do not go higher, can you sleep at night? If you pay over the list price, can you sleep at night? Historical financial data is the basis of many real estate decisions, but so are feelings in this market and feelings cannot be calculated.”