Market Overview
Contrary to the popular song “Tradition,” the metro Denver real estate market in June 2024 bucked the normal trends and retracted earlier than usual. Typically one of the busiest months during the real estate cycle, June was highlighted by a 11.8% month-over-month decrease in sold homes and a 6.9% year-over-year decrease.

Certainly, buyers flexed their negotiating muscles, resulting in having more of their offers accepted below the asking price and receiving more money from seller concessions — primarily used to pay for a chunk of a buyer’s closing costs or to “buy down” the buyer’s interest rate.

Demand for homes decreased, fewer homes went under contract, and, thus, fewer homes sold.

Important Note
Naysayers probably are delighted with these statistics. However, although the real estate market in Denver has weakened, it’s still relatively stable. The median price of homes rose 1% from June 2023 — not much, but it rose. If Arnold Schwarzenegger had lost 1/4 of an inch of muscle during his heyday, he still would have been considered darn solid! I’ll maintain a watchful eye going forward.

Accurate Pricing Matters
As my last month’s Market Report forecasted, we’re experiencing more inventory this summer, which, in turn, leads to more competition, softening prices, and price reductions. Pricing a home at or below market value is so important, instead of pricing it above market value, allowing for “wiggle room,” and dropping the price to where it should have been but then dealing with the stigma of a “stale” listing.

Multiple Offers — Maybe
As I wrote last month, I've noticed about half of all properly priced single-family homes went under contract within their first week on the market — with some receiving multiple offers. Meanwhile, the other half often lingered on the market for 30 to 60 days. Again, the proper listing price and specific location — city, zip code, or neighborhood — matter.

Inventory
My monthly mantra: I believe Months Supply of Inventory is a true yardstick of the real estate market. A "balanced" market has at least three months and up to six months of supply available. In other words, if, starting today, no sellers were to list their home for sale, then — according to the definition of a balanced market — all the for-sale homes would sell in three to six months.

That figure was 2.6 months in June, a 5.5% month-over-month increase and a 51% year-over-year increase. We’re inching closer to a balanced market.

Tidbits

• Higher-than-expected homeowners insurance quotes and increased HOA costs have affected the potential sale of homes, especially attached homes, such as condos.

• Active inventory reached its highest levels since 2014. June had 6,653 homes actively for sale — a 44% increase from June 2023.

• The median sales price in the metro-Denver area is now $656,750, about 1% higher than in June 2023.

• Average and median days on market increased, with homes taking longer to sell than in recent years. The average number of days to receive an offer was 26, up from 22 days in June 2023.

Note: Days on market can be skewed by how the MLS processes new-construction homes.