Keeping in trend with traditional seasonality, the transition from July to August felt like a shift as vacations slowed down in preparation for the school year and fall. Buyers are more willing to be patient in order to find the right house for the “right” price.
The report saw this reflected in the days in MLS, which increased from 9 to 11 in August 2021. Likewise, the close-price-to-list-price ratio dipped ever so slightly month-over-month. In a dramatic data point, the month-end active inventory dropped 11.69 percent. Historically speaking, the change in inventory is relatively consistent from July to August.
However, with both inventory and new listings decreasing, the short-lived “loose grip” on inventory has tightened once again. Months of inventory decreased from the previous month to 0.637. The report also indicated that if no one were to put a property on the market for 19 days, there would be nothing to sell in the entire Denver Metro area.
“Recalibration is a daily practice as a Realtor® and as the market shifts so do our strategies,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “As we approach the winter with seasonality in effect, if you are a seller and not thinking of selling for a few months, consider taking professional photos while the sun is out and the snow is not in your yard. When you do decide to sell, you can use those green grass photos to show off what your house will look like in the summertime. If you are a buyer in a unique situation, whether you have less money to put down or are needing a longer close, you may want to look at properties that have been on the market longer than a week.”
While month-end active inventory is historically low for August, this month’s report showed there are plenty of opportunities. There have been 5.76 percent more homes purchased this year in the Denver Metro area than last year at this time. Buyers continue to benefit from low interest rates and an increase in days in the MLS that has resulted in the Denver Metro area selling over five billion more sales volume this year than last year at this time.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
In August 2021, the Luxury Market remained strong overall. New listings dipped 18.56 percent from 598 homes to 487 and closed sales were down 13.97 percent, with sales volume trailing behind with a 12.65 percent lag. Following the trend of sluggish numbers, the average days in MLS shot up 71.43 percent from 14 days last month to 24 days.
Detached homes experienced a shift but fared well in August with 413 new listings and 410 closed properties. However, new listings dipped by 19.34 percent from last month, while closed sales dropped 15.98 percent from 488 homes to 410. The most promising news in the detached market is that pending sales climbed slightly month-over-month by 8.24 percent, with 407 homes currently under pending status.
The attached segment of the market marched to a different drum with new listings down 13.95 percent to 74 while pending sales dropped 24.24 percent to 50 homes. Closed sales increased slightly from 49 homes to 52 resulting in a slight increase in sales volume. Average days in the MLS jumped 100 percent from 30 days to 60 days while the median days jumped 83.33 percent to 11 days.
“Back to school can be a tough transition, trading laid-back days with no agenda for rushed morning drop-offs,” said Libby Levinson-Katz, DMAR Market Trends Committee member and Metro Denver Realtor®. “The Luxury Market experienced a similar transition as Denverites took advantage of end-of-summer vacations to get out of the heat. Traditionally, when the Denver heat index soars, the market cools as buyers head to the hills in search of cooler temperatures.”
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
