If you need help navigating this market, call us at (303) 532-4742. Buyer fatigue is real at the moment, with lots of buyers giving up on their search. Sellers are getting bad advice, listing with no plan or execution. When you work with us, you are working with the very best Denver real estate agents. Don't leave such a huge financial decision to chance.
July 2021 Denver Market Update:
The June real estate market continues to be unique and is largely defined by 5 key trends across pricing, supply, and even new listings as outlined below. An interesting data point we will continue to watch is a slight decrease in showing activity (which may indicate a slowing residential market going into the second half of the year).
- Single Family Average Sold Price surpasses $700K for the first time - up 31% year-over-year.
- Supply, the number of homes for sale, shows a slight increase of 18% over last month however still down 64% year-over-year.
- New Listings increased by 11% year-over-year with 7,388 new listings entering the market in June.
- Demand, the number of pending homes under contract, is slightly less than this time last year but still outpacing 2018 & 2019.
- Showing Activity slowed in June compared to 2019 and 2020.
Supply - Active Listings
Active listings are down year-over-year but up 18% over May 2021. This data point, coupled with slightly slowing showing activity, could indicate a breather for the market as we head into the remainder of 2021.
New listings are coming onto the market with an 11% increase year-over-year. This is good news for prospective buyers who may feel fatigued after a hectic first half of the year.
Demand - Pending Sales
While pending sales are down slightly compared to 2020, we are still seeing extreme demand for housing in the Denver metro. In contrast to 2019 pending sales are up 17%.
Showing activity started to drop off at the very end of May and continued to be lower than 2019 and 2020 levels during the month of June.
Be on the Lookout for a Possible Increase in Mortgage Rates by Late 2021
Pressure is building for mortgage rates to increase and this uptick will affect affordability and demand. Mortgage rates reached an all-time low in January of 2.65%. With increasing inflation and a possible reduction in the federal purchasing of mortgage-backed securities, it seems possible that rates could increase by the of the year.
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Reports based on data from REColorado®, Inc.Posted by Ryan Penn on