Market Overview
As we ease into the end of summer, the Denver metro housing market cooled slightly during July, which is typical during the summer months. While the market continues to show signs of adjustment, there are also positive indicators for both buyers and sellers.

The bright spot in today's market is the increased opportunities for buyers. They now have more negotiating power and choices than at any point during the last decade. With more choices available, buyers have had more leverage in the market. Consequently, homes are spending more time on the market. 

Sales and Prices
The number of homes closing during July — 2,772 — dipped 2.6% compared to the previous month, suggesting a more-balanced market. The month-to-month median declined by 0.3% to $655,000. This price softening is driven by increasing supply and decreasing demand, which indicates an early entry into the retraction phase and is seasonally expected.

Inventory and Competition
The amount of available inventory reached the highest level for July since 2014. Sellers are recognizing that the optimal time to list is from March to May, especially because inventory is expected to grow until September or October.

Falling Interest Rates
A significant development in July was the accelerated decline in mortgage rates. Following a cooler-than-expected jobs report and expectations of a Federal Reserve rate cut, the 30-year fixed mortgage rate dropped to 6.8%, the lowest point of the year. This decrease potentially could reignite buyer interest during the coming months.

Accurate Pricing Matters
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.

Here’s a repeat from the last three months: I've noticed a healthy amount 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-or-more day s. Again, the proper listing price and specific location — city, zip code, or neighborhood — matter.

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 2.7 months in July and in June, representing a 43% year-over-year increase. We’re inching closer to a balanced market.

Tidbits

• Seller-paid concessions were prevalent in many closed transactions, with a notable average amount primarily used for buyer’s closing costs or interest rate buy-downs.

• The median sales price in the metro-Denver area is now $655,000.

• A significant percentage of homes sold for below the asking price, showing sellers’ willingness to negotiate.

• 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 27, up from 22 days in July 2023.

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