The cooling Denver market and where it’s still hot
After months of white-hot activity, the Denver real estate market officially cooled in July.
As I’ve covered in this blog, there were signs of this chill coming, and July numbers confirm what I’ve seen on the ground in many areas of the city: multiple offers are down, inventory is up and we’re heading toward a more balanced market between buyers and sellers.
The number of active single-family Denver metro listings at the end of July, 2,878, represented a jump of 34.67 percent from the end of June. This occurred while the number of closings dropped, month over month, 12.1 percent to 4,123. Inventory up and sales down are classic indications of softening demand.
Of course, prices provide a more clear sign of this trend. For first time in 2021, the median close price of single-family metro homes did not increase from the previous month — from June to July it held steady at $600,000.
The $600,000 median closed price in July, however, represents a 20.0 percent increase from July 2020! This shows just how hot the market has been and that prices have finally hit a place where the supply-demand curve has begun to balance.
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The hotter high-end market
As I have chronicled before, the Denver high-end market tends to operate a bit differently than the full market. And July is no exception.
In my core neighborhoods, such as in Washington Park, I’m seeing some record recent sales of homes that close well over $3 million. That does not happen often, but there have been three that I’m aware of in the last 90 days.
For example, take the 2017-built home at 775 South Vine, in Washington Park. It listed for $3.2 million and closed at $3.45 million. That is insane, let me tell you. It’s a beautiful home with a great floor plan, but homes at that price point typically don’t get bid up that high over list price (nearly an 8 percent jump). It also represented, a price per square foot of $656, which almost double the $341 average for luxury Denver single-family homes (those sold for above $1 million) sold in July.