July 2015 Denver Real Estate
While the real estate market still remains strong in the Denver Metro area, the market started to change some back in June as buyers may be starting to back off some absent a strong job market and wage growth to match higher home prices. We also have the possibility of interest rates heading higher in the near future and with inventory levels building back up, this may be putting a cap on home prices from going much higher in the near term.
As we can see from the graphic above, more sellers are coming to the market as there was a 20%+ increase in inventory levels over June. This roughly added another 2,500 homes in the Denver Metro area that went on the market in the month of July. However, inventory levels are still fairly low from a historical perspective. For instance, 7,470 homes were on the market in July of 2015 in which we would need to go all the way back to January of 2013 where we last saw single family inventories at this level. The lowest point in inventory levels we have really ever seen came back in February of this year, when there were only 4,079 homes on the market. This is when we witnessed the spike in home prices as a result of these historically low inventory levels. Since then we have seen a steady increase in inventory levels month over month and prices may be starting to plateau some, although certain pockets and price ranges remain very strong.
This recent influx of inventory may be that sellers are hoping to cash in on the lower than normal inventory levels the Denver metro area has been experiencing over the last several months. The median home price increased from $315,000 in July of 2014 to $350,000[i] in July of 2015, marking an 11.1% increase from last year. However, this can be a double edged sword, as expectations may be getting a little out of hand with both buyers and sellers.
While buyers are still present in the marketplace, many are entering into homes with higher than average expectations as to home quality and finish. If you are thinking about selling and you want top dollar for your property, it will be very important your home shows well!
Please contact us if you have any questions or would like help with ANY of your real estate needs!
[i] Source: DMAR August 2015