In June 2021, the report shows that what goes down must come up. Overall, month-end active inventory increased 50.46 percent compared to May 2021, which is the highest percentage of month-over-month increase in DMAR records. The number of new listings was up 23.89 percent month-over-month. Likewise, the number of closed properties increased by 9.29 percent. More houses hit the market in June, and therefore more people had the opportunity to buy, which is reflected in the month of inventory increasing to 0.50. While historically, this still remains incredibly low, it does show a slight shift from the previous month, which was 0.39.
“Big percentage changes happen when the market starts with the low inventory that Denver has recently seen,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “For the first time in what feels like a long time, buyers have to compete with less competition, and therefore, the extreme bidding wars have drastically decreased. Sellers are now adjusting their listing strategy to what the comps suggest. However, while inventory did drastically increase from the previous month, we are still at less than one-third of the total inventory compared to 2019 at this time.”
Overall, the theme of buyer fatigue, holiday travels, and an overall decrease in buyer demand has only started to be reflected in July’s market trends report. Whenever there is a shift, whether it is seasonal or unprecedented circumstances, adjustments are made slowly. Sellers have been using comps from the peak of the frenzied seller’s market and potentially listing too high. While buyers may feel the exhaustion, the opportunity to get a house under contract at list price is beginning to grow more realistic.
As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. So whether you’re buying or selling, let’s connect today to discuss how we can navigate the market together in the coming months.