June Market Update
We generally see the peak of the busy season in June. 2021 was no different. Denver saw record-breaking stats for the number of closings, average close price, and new listings. The June inventory increased 50.46% over last month. For reference, the average May to June increase is 5.86%. With such low inventory, the percentage swings are much more dramatic. To put it in perspective, inventory is still down 51% from last year at this time.
The average closed price continues to climb. In June, the average of $643,645 is up 26.76% over last year and 3.58% over the May 2021 average. This works out to buyers paying $100,000 more for the median home this year than last year and monthly growth is continuing. It goes without saying that the Denver market remains an aggressive seller’s market. The average days on the market is only 4 for both attached and detached homes. The close to list price was 105.41% again this month.
We are seeing a slight shift in buyer and seller behavior. Sellers’ price expectations are catching up to the market. As sellers price their homes initially higher, they are seeing fewer competitive, multiple-offer situations. Closed prices continue to break records, even if buyers aren’t fighting off 10 other offers. For buyers, we are seeing many experiencing mounting fatigue and choosing to take a break in their search. This might open options for motivated buyers, where prices are still holding steady, but competition has slightly waned.
Even as inventory ticked up in June, Denver is still experiencing a drought of available homes. The one solace for buyers remains the low-interest rates. Rates sat around 3% consistently for June. So as small windows of opportunity open up, buyers can take advantage of the increased buying power low rates allow. The market in Denver is experiencing small changes every day so make sure you are working with an agent with the knowledge and agility to guide you through it.