Denver, CO Metro Area Housing Market Analysis - August 2024
The Denver, CO metro area housing market in August 2024 presents a nuanced picture with several key indicators showing both positive and negative trends. This analysis delves into the various metrics to provide a comprehensive overview of the current state of the market.
Price Metrics
The Median Sales Price for homes in the Denver metro area stands at $586,000, reflecting a slight decrease of 1.2% year-over-year (YoY). Conversely, the Median List Price has increased by 1.5% YoY, reaching $599,000. This divergence suggests that while sellers are optimistic, buyers are negotiating prices down.
The median Price Per Square Foot has seen a minor decline of 0.5% YoY, now at $275.20. On the other hand, the Median List Price per square foot has risen by 1.9% YoY to $288.10. These figures indicate a slight softening in the market, with sellers still holding firm on their listing prices.
Sales and Inventory
The number of Homes Sold in August 2024 is 3,803, marking a significant decline of 6.3% YoY. Pending Sales are also down by 3.1% YoY, totaling 4,245. New Listings have decreased by 1.1% YoY to 4,752. However, the inventory has surged by 38.2% YoY, reaching 10,044 homes. This increase in inventory has led to a substantial rise in the Months of Supply, now at 2.60 months, an 80.0% increase YoY. These figures suggest a shift towards a buyer's market, with more options available and less urgency to purchase immediately.
Market Dynamics
The Median Days on Market have increased by 11.0% YoY, now at 27 days. This indicates that homes are taking longer to sell compared to the previous year. The average sale to list ratio has slightly decreased by 0.6% YoY, now at 98.8%, showing that homes are selling for slightly less than their listing prices.
The percentage of Homes Sold above list price has dropped by 8.0% YoY to 23.1%, further indicating a cooling market. Price Drops have seen a marginal decrease of 0.7% YoY, now at 44.3%. Additionally, the percentage of homes going off the market within two weeks has declined by 12.3% YoY, now at 34.1%. These metrics collectively point to a market where buyers have more negotiating power and are less pressured to make quick decisions.
Conclusion
In summary, the Denver, CO metro area housing market in August 2024 is experiencing a period of adjustment. While sellers are maintaining higher list prices, the actual sales prices and the number of Homes Sold are declining. Increased inventory and longer days on market suggest a shift towards a more balanced or even a buyer's market. Buyers now have more options and negotiating power, while sellers may need to adjust their expectations to align with the current market conditions.
