While still in a robust seller’s market, the July 2021 report indicates that as we head into the fall, buyers will start to have more time to review properties and less competition on the number of offers overall. In addition, the July residential real estate market reported an increased inventory of 29.92 percent, while it also represented a decrease in closings of 12.30 percent compared to the previous month, indicating a supply increase and demand decrease.
While the average closed price was 16.40 percent higher this July than July 2020 and July represented the lowest number of active properties at month’s end in July’s history, with an inventory of only 4,056 properties, this number actually increased from June to July, reflecting the flow of the market.
“The real estate market continuously changes,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “It appears that, for now, we are back to drawing within the lines. For buyers, this can be beneficial by having more normal expectations of what it takes to buy. However, for sellers with grandiose dreams of what their house could be worth, now is the time to come back to reality and use the data to help make an educated decision.”
Overall, historical perspective in the Denver market indicates that an increase in inventory and a decrease in sales volume is not uncommon in the transition from June to July. However, with the relative lack of inventory, it can be expected that the balance between supply and demand will stay steady through the remainder of the year.