Temps Sizzle While Market Cools

Temperatures rose predictably in late June as summer commenced but the metro Denver real estate market cooled a bit:

• • Fewer homes closed.

• • More homes were available for purchase.

It’s true. The number of homes changing hands during June stood at 5,906, which is a 7.07% drop from the 6,335 that closed in June of 2015.

Furthermore, the number of homes available for purchase at month end climbed to 8,189 on June 30^th this year versus the 7,549 available at the end of June a year ago – an 8.48% increase.

Demand is down. Supply is up. Many observers consider this good news, believing that the real estate market could benefit from a bit of cooling.

But is this the beginning of a market shift?

Some perspective is in order. Market condition is measured by weeks of inventory – how many weeks would it take to sell every home on the market if no new properties were added.

A year ago, we had 4.92 weeks of inventory. That number has now bumped up to 6.00 weeks of inventory. This is a welcome change and will help buyers that have been frustrated with the crazy competition for the few available properties.

However, this is certainly not a change of market status as anything less than 13 weeks of inventory is considered to be a seller’s market. Inventory would need to more than double for us to reach that figure and indicate a switch to a balanced market, favoring neither sellers nor buyers.

Here’s the summary of market performance this June compared to June of 2015:

The stats above are for sales activity in Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson counties. It includes home sales handled by real estate agents though Metrolist/REColorado®, Inc., the MLS system serving the metro Denver area.

You can see a more extensive breakout between the single family and multi-family segments of the market by clicking on the links at the end of this post. Be sure to take a peek.

If you like the look of those reports, we can produce one for you that is specific to your zip code and property type. The market is not uniform. Your part of town may be doing better or worse than the metro-wide averages.

Single Family Homes June 2016
Multi-Family Homes June 2016