REAL ESTATE NEWS
Cooling Down (In A Controlled & Orderly Fashion)
As we move into fall, the Denver Broncos seem to be heating up (nice!), but the housing market is finally starting to simmer down. Based on the showing traffic there has been a marked decline in the demand for homes since spring. This indicates that the market is continuing to cool down in a controlled and orderly fashion. Median home prices were down around 0.5% at the end of August, coming in at $535K. That half-a-percent decline is a good sign that the slowdown we usually see in fall and winter is actually happening this year, unlike the pandemonium of last year. Home price appreciation should slow in the months ahead. We see this trend as stable and healthy.
The number of active listings at the end of August in Metro Denver was approximately 3,600 homes and condos, down 12% from the month prior. That is the most unusual aspect of August data. We usually see an increase in inventory before winter kicks in, which is the slowest season for real estate. One reason for this decline in inventory is many people are less enthusiastic about the market. This is mainly due to home price increases and high rent growth. Those factors not only affect buyers, but also home sellers if they decide to move. According to the Wall Street Journal, “National asking rents rose 10.3% in August. That marked the first double-digit increase in more than 20 years.”
In the mortgage world, loan applications are going strong. They are running below the wild pace of 2020, but above the trend seen in 2012-2019.
In August 2010 the Denver Metro saw 941 distressed home sales, which represented 32.3% of sales that month. In August 2021 there were only seven distressed home sales, which represented only 0.18% of sales. As moratoriums on evictions expire, some rentals may become distressed, but according to DMAR this should not amount to a flood of distressed home sales like we saw in 2010.
Overall, the Denver real estate market remains strong. If you would like to discuss the market or if you need help buying or selling, please contact us today!