Seasonal Moderation Continues
The market continued to moderate a bit in August which is not unexpected for this time of year. Market statistics indicate a decline in closed sales compared to July and a moderate increase in under contract (new sales) for single family homes in August. It was reported that August saw a multi-year high in contract cancellations indicating caution on the part of home buyers. This would help explain the divergence between increasing under contract and declining homes sold. The frequency of multiple offer scenarios has been declining in the market. Despite an increase in active inventory on an annual basis, the supply of homes remains historically low and the demand remains healthy. A few highlights from August:
- Number of available listings for the month increased by 14% in a year over year comparison
- Number of Homes Sold declined 11% from July and 8% from August, 2018.
- Single Family Homes placed under contract (pending sale) increased 18% in a year over year comparison.
- Average Sold price declined 1.3% from July and increased 4% from August, 2018.
- Less than a two-month supply of homes for sale exists in our market (more than five months of inventory is considered a buyer’s market.
- Average days on market (30) increased 31% in in a year over year comparison.
- New construction activity continued at a robust pace as builders push to take advantage of current market conditions (more available inventory – more buyer incentives)
- Mortgage rates continued to moderate to a range of 3.35% to 3.65% improving affordability
- Underlying trend (rising # of homes for sale, declining # of sales, rising days on market) towards a more balanced market continued.
Bottom line, current market conditions are generally positive for most buyers and sellers. The underlying trend towards a more balanced market will have a greater market impact later in the Fall when seasonal moderation begins to have a greater impact on the market. However, dropping mortgage interest rates you help support the in the Fall. If a move is in your future, now is the time to sell your home. Market conditions vary from neighborhood to neighborhood. Contact me today for an update on the value of your home.
Below is a Denver real estate market snapshot based on August 2019 Statistics from DMAR Market Trends
This information is for the Denver Metro real estate market. Real estate market activity varies from neighborhood to neighborhood. If you would like an instant real estate activity report for your neighborhood click Market Report
or contact us for more information.
Questions? Let’s talk – contact us anytime to discuss your questions, plans or the current value of your home. If a move is in your future now is an excellent time to discuss home preparations and a timeline for your move.