Inventory increase shifts toward buyer’s market

With a 68% increase in available inventory from July of last year, the close-price-to-list-price ratio is the lowest it’s been since July 2020.

According to the July monthly real estate trends report from the Denver Metro Association of Realtors, the close-price-to-list price is 99%, down from 99.6% in June and 99.9% in July 2023.

The median close price dipped slightly from $601,000 to $600,000, but prices continue to rise compared to the median close price of $590,000 last July.

The number of active listings climbed 3.6% from 10,214 in June to 10,584 in July, up 68% from 6,299 in July 2023.

July’s average number of active listings from 1985 to 2023 is 15,502. The record high for the month was 2006, with 31,989 listings. The record low was 4,056 in July 2021.

The historical average increase in active listings from June to July is 5.4%. This year’s 3.6% increase represents a slower-than-anticipated increase, signaling the metro area’s seasonal inventory peak is near.

The Denver area real estate market typically slows in July, but this year has been unpredictable, Libby Levinson-Katz, chair of the DMAR Market Trends Committee, said in the report.

The Denver market continues to move to a balanced market with 2.9 months of inventory.

“I’ve recently heard realtors express that we are shifting into a buyer’s market,” Levinson-Katz said.

“This is hard to define as the pandemic turned some of our steadfast rules of what constitutes a seller’s market versus a buyer’s market on their head.”

However, she said the increased summer inventory gives buyers more negotiating opportunities. “It provides the opportune time to find a new home before prices go back up.”

According to the DMAR report:

• Closed home sales of 3,708 were down 5.2% from 3,911 in June and 4.7% from 3,890 in July 2023
• Median days in MLS hit 15 days, up 15.4% from June and 66.7% from 9 days in July 2023
• New listings of 5,152 were down 11.6% from 5,827 in June but up 7.6% from 3,735 in July 2023
• Pending sales of 3,896 were down .2% from 3,903 in June but up 4.3% from 3,735 in July 2023

Luxury home sales slow in July

In July, there was a significant slowdown in luxury real estate activity for properties priced above $1 million.