Report: Significant inventory increase didn’t slow Denver home price gains in June

Report: Significant inventory increase didn’t slow Denver home price gains in June

Roger Pettingell Sarasota Real Estate

(The Center Square) – Home prices in Denver continued to climb higher in June despite a significant increase in local inventory, according to the latest market trends report from the Denver Metro Association of Realtors (DMAR). 

Overall, Denver ended June with more than 6,000 active listings on the market, a more than 94% increase over the last 12 months. But the average closing price rose to $719,000, representing a more than 12% increase over the same time. 

“This increase in supply will impact pricing, days on the [multiple listing service], and the relationship between buyers and sellers,” Andrew Abrams, chair of DMAR’s market trends committee, said in a statement. “But not yet. The same can be said for interest rates, which have negatively impacted buyer’s purchasing power.”

Single-unit homes, also known as detached homes, saw the most significant inventory increase in June. More than 4,600 homes were listed for sale by the end of the month, representing a nearly 120% increase from 12 months ago. 

The number of detached homes sold in June declined by 24% to 3,574. The average number of days that these homes were listed on the MLS also increased by 25% to 10 days. 

Abrams said these issues could compound in the future as interest rates continue to rise in order to combat inflation. 

“While getting into this market has less competition, the cost of waiting for has been significant for many first-time homebuyers,” Abrams said. 

One sector of the market that is growing increasingly difficult to enter is the attached property sector – which includes apartments, townhomes, and condos. Denver set a record for the average price of an attached home in June as it rose to more than $504,000. This represents a 15.7% climb from June 2021, according to DMAR data. 

The average days that an attached home is listed on the MLS also declined by more than 30% over the last year to just nine days. That is despite the number of closed sales declining by 22.5% over the same time. 

Abrams said he expects the housing market to slowdown in the future as the stock market and cryptocurrency markets continue to decline amid persistent inflation. 

“Housing will eventually become a victim to the economy as a whole,” Abrams said. “Just how much is yet to be seen.”

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