Housing inventory slows in august as seasonality trend continues
Metro Denver’s residential market report for August 2021 showed a slowdown in inventory while still being a good time for burnt-out buyers to re-enter the market as the seasonality trend continues for the area, according to the Denver Metro Association of Realtors (DMAR). Keeping in trend with traditional seasonality, the transition from July to August felt like a shift as vacations slowed down in preparation for the school year and the fall season.
Buyers are more willing to be patient in order to find the right house for the “right” price. The report saw this reflected in the days in the MLS, which increased from nine to 11 in August 2021. Likewise, the close-price-to-list-price ratio dipped ever so slightly month-over-month. In a dramatic data point, the month-end active inventory dropped 11.69 percent. Historically speaking, the change in inventory is relatively consistent from July to August.
However, with both inventory and new listings decreasing, the short-lived “loose grip” on inventory decreased from the previous month to 0.637. The report also indicated that if no one were to put a property on the market for 19 days, there would be nothing to sell in the entire Denver metro market.
While month-end active inventory is historically low for August, this month’s report showed there are plenty of opportunities. There have been 5.76 percent more homes purchased this year in the metro Denver area than last year at this time. Buyers continue to benefit from low interest rates and an increase in days in the MLS that has resulted in the area selling over five billion more in sales volume this year than last year at this time.
The DMAR report also includes statistics and analyses in its supplemental “Luxury Market Report” (homes sold for $1 million or more). In August 2021, the luxury market remained strong overall. New listings dipped 18.56 percent from 598 homes to 487 and closed sales were down 13.97 percent, with sales volume trailing behind with a 12.65 percent lag. Following the trend of sluggish numbers, the average days in the MLS shot up 71.43 percent from 14 days last month to 24 days.
Detached homes experienced a shift but fared well in August with 413 new listings and 410 closed properties. However, new listings dipped by 19.34 percent from last month, while closed sales dropped 15.98 percent from 488 homes to 410. The most promising news in the detached market is that pending sales climbed slightly month-over-month by 8.24 percent, with 407 homes currently under pending status.
The attached segment of the market marched to a different drum with new listings down 13.95 percent to 74 while pending sales dropped 24.24 percent to 50 homes. Closed sales increased slightly from 49 homes to 52 resulting in a slight increase in sales volume. Average days on the market jumped 100 percent from 30 days to 60 days while median days jumped 83.33 percent to 11 days.
A spokesman for the DMAR advises prospective sellers to consider taking professional photos while the sun is out and the snow is not in your yard. When you do decide to sell, you can use the green grass photos to show off what your house looks like in the summer.