Market Fun Facts (9/03/21): What will the real estate market look like this fall as school begins and sCOVID restrictions begin to be debated between counties? To answer this question NeXstep continues to monitor inventory levels across the 6 County Denver Metro. This month we are down (-510) active properties for a total of 4,156. This is the second highest level of 2021. Sales leveled off from the summer highs in July and August in each of the six county metro areas. Overall sales are down -361 for a total of 5,982 sold homes. This decrease in listings did not affect our absorption rate. In fact we saw a decrease in the absorption rate from .74 months to .69 months (still under 1 month). For the 2nd time this year we had a single county break 1,000 active listings; Denver County with 1,138. Denver County leads with the way with 1,138 active listings while Broomfield County continues to have the fewest listings with only 140 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. Despite lower sales in August we still 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:
Seasonal Trends Begin to Kick In
We’ve all been waiting with bated breath to see if some signs of normalcy would return to the Greater Metro Denver Market and it seems to be showing signs of trends from years past.
Typically, inventory begins to rise starting in June and continues through August while buyer demand begins to taper in June through the end of the year. This causes prices to fall back for a period of time as a seasonal adjustment to the relationship between supply and demand. All three of these events have occurred, but in a more exaggerated way due to the still lingering lack of inventory and buyer demand.
With interest rates taking a dip at the end of July 2021 buyers have both more choices available and a slight bump in affordability making it a good time for those buyers who burned out in the spring months to come back and take a second look.
Buyers may enjoy a less competitive market as kids go back to school and as Labor Day approaches be sure to get your buyers into some homes.
In the next few weeks I’m watching for further signs of shift as our market goes through seasonal retraction. This reveals itself through more widespread but smaller price reductions. As of last week there was a bump in the amount of price reductions in the market, up to 20% of all homes made price reductions that went under contract between July 28th and August 3rd. This is double the value reported for closings in July.
As always, if I can be of assistance to you please don’t hesitate to reach out. I hope you’ll consider working with First American Title on your next transaction!
To read the full report from Megan CLICK HERE…