The end of the summer selling season in Denver demonstrated a delicate balance between demand, pricing, and inventory. Despite a slight dip in the median closed price and a reduction in home closings compared to the previous year, the market exhibited resilience, especially in the luxury segment.

1.     Median Closed Price and Negotiation Trends
The median closed price of a home in the Denver Metro area continued its recent trend, seeing a slight dip for the second consecutive month after reaching its peak in June. The market has been characterized by robust demand, allowing little room for negotiation on prices. Homes closed at a solid 98% of the asking price in August.

2.     Home Closings and Luxury Market Insights
The number of home closings experienced a seasonal uptick from July to August. However, compared to the previous year, there were 12% fewer closings. This decline is attributed to the combination of strong home prices and higher interest rates, which deter some buyers. Notably, the luxury market, defined by homes priced at $2M or more, showed resilience with a remarkable 31% increase in closings year over year.

3.     Inventory and New Listings
While new listings ticked up slightly from the previous month, the overall inventory levels in the Denver Metro area remained low, down 7% from last year. Homeowners hesitated to trade their low mortgage rates for new homes, contributing to this trend. The $500,000-$600,000 price range witnessed the most fresh listings.

4.     Median Closed Price and Days on Market
The median closed price for a Denver Metro area home in August was $582,700, showing a 1% increase from the previous year. After peaking in June, home prices experienced two consecutive months of slight decreases. Additionally, homes spent 12 days in the Multiple Listing Service (MLS) in August, one day longer than the previous year, indicating a slightly longer time on the market.

Overall, the Denver housing market is navigating a period of fluctuation, marked by a recent decrease in average home value. It will be interesting to see what unfolds in the next 12+ months, but Denver remains one of the best long-term real estate investments in the U.S. If you’re thinking of becoming a homeowner this year or next, reach out to one of the experienced pros at Metrowest – we’d be happy to talk over your options.