Inventory and Prices Rise Alongside Summer Temperatures

Inventory and Prices Rise Alongside Summer Temperatures

Inventory and Prices Rise Alongside Summer Temperatures

Summer is officially here and residential active inventory kicked it off with a near 20% jump from May to June 2017. As supply went up, the number of sold homes decreased slightly over the previous month (-1.82%) but is holding steady (+.55%) over the same period last year.

Despite the spike in inventory, the market is still short about 10,000 listings when compared to the 1985-2016 combined average. As a result, average and median sold prices continue to climb slowly but steadily coming in at an increase of around 8% and 7% respectively over June 2016.

Single family home listings closed on average after 23 days on the market — four days faster than in May and three days ahead of the same period last year. However, condo sales are lagging a whole 10 days behind June 2016 at 36 days on the market and three days behind last month. Slow condo sales may be due to a 22.49% increase in inventory combined with an augmentation of over 14% in average sold price year-over-year.

A recent study by ApartmentList.com indicates that the majority of Denver millennials would like to buy a home within the next five years but cite affordability as their biggest roadblock. With high rent, student loan debt, and rising home prices, saving for a decent down payment is an uphill battle for young Denverites. As financial concerns force Denver’s largest generation to delay home ownership, the housing market will certainly feel the effects — how exactly this phenomenon will influence it is yet to be seen. If you’re a millennial looking to buy, we can help you find a starter home within your budget. Give us a call at 720-935-0412 or fill out our contact form.

Note: All data has been sourced from the July Denver Metro Real Estate Market Trends Report compiled by the Denver Metro Association of Realtors and includes 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.

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