It’s no secret that I’m a big sports fan. Lots of people love sports; I know I’m not the only member of that club. One of the greatest things about sports is records – they’re set, they’re broken, and I get to watch, white-knuckled and giddy whenever someone is chasing down some long-standing record. I absolutely love it! We all do. It allows us to bind together and be a part of something historic. It gives us something fresh and healthy to discuss, to be inspired by, to be entertained by, and it allows us to do a little prognosticating: “Will that record ever be broken again?” Probably.
In July, the real estate market broke some of its own records. As with sports, we have been plenty entertained by it, and we more than enough to discuss in regards to it. Which records fell in July? I’ll tell you the most important ones…
1. Active listings for July: At the end of July, there were 6,449 homes available on the market; 4,001 detached family homes, and 2,448 attached homes.
2. Closings: We saw a record amount…6,664. Not really a surprise here, since so many homes went under contract in June.
3. Detached Single Family Average Price: $601,863. That represents nearly a 10% increase in the average DSF home price year-over-year.
What does this mean? The first two are pretty self-explanatory. Homes are selling much faster than they’re coming on the market, and our demand doesn’t appear to be slowing (more on that in a minute).
Number three is a big number. That near-10%-increase in average price is an indicator of exactly how much demand there is, as that results from multiple offers on homes that end up competing against one another, and driving prices ever-higher. Interest rates remain incredibly low, which gives buyers the power to purchase homes they might not have been able to afford last year.
There is one metric which saw a month-to-month decline that caught my eye, which we’ll continue to monitor. Pending sales, or under contracts, were down slightly from June to July. What does this mean? Well, it could mean a couple things. It could be an indicator that buyer fatigue is beginning to settle in. We typically see buyers wear out some in May and June.
Considering we had a two month shutdown, it would make some sense to see buyers slow down in July and August. We’ll see what August has to say about that in a couple of weeks. It could mean that buyers who did not need to buy held off, and are waiting for more inventory to come to market. Just not sure there, but we’ll see soon.
Anecdotally, it does not feel as though our market has slowed much. We’re still hearing stories of multiple offers and buyers having to gnash their teeth to land the homes they love. Months of inventory is still hovering around one throughout the entire metro area, save for LoDo, which has around six months of inventory right now. Buyers, this means that, unless you’re looking at a LoDo condo, you have less than one house to choose from.
Is it the right time to buy? Is it the correct, safest time to sell? Feel free to reach out, as always. I’d love to do a deeper dive with you, and figure out how this market best suits your needs.
Stay cool, friends. Of course, stay safe. Don’t ever hesitate to reach out with questions. Until next month!