As summer stepped out the door like a backpack clad child happily (you can read the sarcasm, right?) skipping off to school, August rode on by like the buzzing yellow school busses shipping those very happy kids off to school.
The thing is, all that bustle and fuss focused on moving back into a daily rhythm - August energy veers away from springtime house hunting and toward schedules, school days, and daily commitments.
Agents know that the real estate market steps in tune with the school calendar, so comparing this August’s trends to August of last year provides more insight than a comparison to last month.
You’ve read it in the news and heard the water cooler discussions: real estate trends aren’t what they were in May. The August Market Report for Denver shows some slowing data… what does it all mean?
Inventory is up just a bit
Supply and demand drive the Denver real estate market, just like any other consumer-driven market. Active inventory has increased just the teaniest bit: a fraction of a percentage (0.11%) as compared to July and only 0.45% as compared to August of 2016. This small increase is a change for the recent inventory starved market and may indicate a balancing market, with less buyers clamoring over the same homes - buy only if inventory continues to climb.
Homes are spending more days on the market
The August market report revealed more good news for buyers: homes spent 10% more days on market than August of last year! With days on market reaching record lows for the past 5 years, this increase is a sign of a less extreme sellers’ market this month.
There are (a few) less homes being sold
The number of homes sold has has decreased by almost 6% since last month and by almost 9% since this time last year! Given the (albeit slight) rise in inventory, this statistic indicates the slowdown in what has been a Denver home-buying frenzy.
Home prices are still on their way up
Despite the additional homes on the market and the slight slowing in sales volume, the average price for Denver homes has increased by 8% since this time last year - clocking in at $434,478. The slight downturn in the average home price since last month (by 2.75%) can be explained by the time of year. This year over year increase in price demonstrates Denver’s market strength.
The experts (mostly) agree
Agents and real estate experts seem to agree that the market isn’t on a downturn, but may be starting to level out after the crazy buying frenzy that Denver encountered over the past few years. Live Urban Real Estate Agent, Caren Colangelo explained, “The Denver market appears to be transitioning toward something that looks more normal.” Furthermore, Steve Danyliw, Chairman of DMAR Market Trends Committee hears a common refrain when speaking to Denver agents. One said, “The feeding frenzy has lessened.”
With the kiddos back to filling their brains and Coloradans back to their daily routine, August tends to reign in the Real Estate Market. However, year over year data seems to hint at a slight mellowing in home buying.