The summer of steadiness! Sales jumped to near normal levels at the beginning of the summer, and have hung out at that high all the way through July. As the market continues to hang onto a larger inventory than we’ve since 2019, the number of new listings is starting to slow down. Sellers may be noticing an abundance of properties for sale in their neighborhoods and deciding to wait to list their home until things look a little less competitive. This, coupled with the lack of buyer fervor, is maintaining a seemingly healthy market in the Denver Metro Area. Let’s take a deeper dive into the statistics for July’s Denver Metro Real Estate Market Review.
Denver Metro Area
As we mentioned above, inventory is much higher than previous years. The end of July saw inventory 21.6% higher than last year, nearly reaching our inventory levels from 2019 right before the pandemic hit. With such a high increase in inventory, we expect to see an increase in closings and properties going under contract. The Denver real estate market is showing an increase of new contracts of 13% as of July, but that does not make up the gap of new listings and homes still listed on MLS. Even with the increased inventory, homes are still moving relatively quickly, selling within 32 days of listing. This is 28% longer than this time last year, which draws the attention of our concern. As more inventory enters, more properties linger, and buyers continue to wait for their dream home, we should expect housing prices to start to drop or the percentage of list price received to start decreasing. We are currently seeing neither statistic support our concerns. The median sales price of homes in the Denver area have risen 2.4% to $640,000 – holding steady with the median sales price of homes throughout this summer.
Boulder County
Once again, looking at the monthly sales statistics of real estate in Boulder one might be immediately worried. The median sales price of homes in the county dropped to $776,000. This is 7.6% lower than last year’s median sales price. With so few homes coming onto the MLS, we’d assume housing prices would rise. The caveat here is that this is a luxury market in a small area with few new homes being built. Homeowners tend to stay in Boulder much longer than in other metropolitan cities and towns. Therefore, when the higher priced homes sell, they’re going to be off the market a lot longer than, say, a home in Capitol Hill (Denver). In July only 138 new listings came on the market. Bringing inventory down 17% from last year’s numbers. The most startling number is how many fewer homes are selling in Boulder County. In July we saw a 68.7% decrease in the number of homes sold. We encourage our readers to not worry about the Boulder County real estate market. With home valuations typically $250,000 or more above the rest of the Denver Metro Area real estate we understand why Boulder’s market feels depressed. With an average mortgage payment sitting around $4,600 before insurance and taxes($776,000 with 10% down payment and 7% interest rate) – we can understand why buyers are potentially looking elsewhere for their dream home.
Longmont
Overall, Longmont hasn’t shifted much this summer. Homes are selling at a median price of $573,000, holding true to the home valuations we’re seeing across our town. This price is about 4% higher than homes were selling this time last year, but year-to-date we’re holding steady with the median sales price. Competition is high because of the affordability of Longmont. Even with competition, homes are staying on the market longer than we would like. A new listing can expect to wait an average of 39 days in Longmont before going under contract. We anticipate the real estate market in Longmont to stay competitive moving through the rest of 2024. The amenities offered to residents, the culture, the architecture of Longmont, and so many other aspects will keep this town in house hunters’ eyes.
As we approach the end of the summer we know fewer homes will start registering on MLS and competition will get tougher. When you’re ready to start house hunting for your dream home, get in touch with The Wise Team. We’ll help you navigate this competitive market and settle you into one of the best areas in the nation!
