Market Fun Facts (7/07/21): What will the real estate market look like this summer season with COVID restrictions being reduced and life begins to return to normal? To answer this question NeXstep continues to monitor inventory levels across the 6 County Denver Metro. This month we are up (+835) active properties for a total of 3,207. Sales continue to increase in Adams, Arapahoe, and Jefferson county but fell in Broomfield, Denver, and Douglas county. Overall sales are up +84 for a total of 6,013 sold homes across all six counties. This increase in listings did increase our absorption rate from .40 months to .53 months. For the 7th time this year all six counties have less than 1,000+ active listings going into July. Denver County leads with the way with 956 active listings. Broomfield County continues to have the fewest listings with only 101 active properties. Current publications indicate a balanced real estate market would need a minimum of 18,000 listings. Thinking about selling…let’s talk!
What do these numbers mean? To help understand what these numbers mean to our local markets we are now including the number of sold comps during the past 30 days or 1 month. Looking at our sold numbers over the past month allows us to calculate a monthly absorption rate. An absorption rate tells us how many months it would take to sell off our entire inventory should we have no new listings. A balanced market is considered 6 months. Below we see all 6 counties are under 1 month.
Talking Points For June 2021
Special thanks to Megan Aller with First American Title for the following Market Summary:
Market begins to show signs of more normal seasonal trends.
I can hardly believe it’s July, while the summer is getting hotter the market shows signs of a normal seasonal retraction as we head into the third quarter.
Historically inventory begins to rise and buyer demand pulls back entering June and will be reflected in the July report when pending units close this month. This slight shift in the relationship between supply and demand allows buyers to enjoy a slightly less competitive market. Showings and shows per property in June have slowed to roughly half of where they were from March through early May.
Looking forward into the latter part of 2021 sellers would be wise to recognize the shift happening now by pulling back on list price. Pricing in the market rather than over the market will help maintain the largest pool of potential buyers as their fatigue is recognized in the market.
Watching for additional signs of shift tend to come in the form of more widespread, but smaller price reductions for listings on the market after July 4th. This trend is typically measurable in the 2nd or 3rd week in July.
With hopes of the market representing data similar to previous years I am optimistic that it will be easier to help set buyer and seller expectations moving into the latter part of 2021.
As always thank you for following along with my report. I hope that if I am able to help you better advise your buyers and sellers that we will have an opportunity to meet them at our closing tables!
To read the full report from Megan CLICK HERE…