The number of homes on the market surged, the number of sales dropped, and price reductions were abundant last month, all signs that buyers are pulling back in metro Denver, according to the latest market trends report from the Denver Metro Association of Realtors.
The inventory of single-family homes and condos available for sale at the end of August rose to 8,228, an increase of 7.65% from July and 11.8% higher than August 2017. Normally, the inventory barely drops between the two months and the change set a record.
"Over the past four years, we've experienced the strongest sellers' market in recorded history," Steve Danyliw, chairman of the DMAR Market Trends Committee and local Realtor, said in the report. "This past month, we saw available homes for sale increase to the highest level in four years, giving buyers more homes to choose from."
Single-family home sales in August dropped 7.46% from July, and are down 9.75% from the same month a year ago. Condo sales dropped 5% for the month and are down 15.6% from August 2017.
About 30% of sellers lowered their listing price in August to entice buyers, Danyliw said. That has created downward pressure in the market.
The median price of a single-family home sold in August was $445,000, down 1.1% from July and up 8.54% from a year ago. The median condo price was $299,000, up 0.89% from July and 9.05% from August 2017.
The number of days it took to sell a condo rose to 20 in August, up from 18 in July, while the number of days a single-family home took to sell rose to 23 from 21. While higher, both still reflect a fast pace of sales.
Danyliw pointed to several signs that buyers are pushing back more — fewer multiple offers on properties, fewer inspection allowances and fewer appraisal guarantees. That said, homes that are priced correctly and move-in ready still sell quickly.
