July 2021 Showed That Seasonality Is Beginning to Occur in the Market
While still in a robust seller’s market, the July 2021 report indicates that as we head into fall, buyers will start to have more time to review properties and less competition on the number of offers overall. The DMAR market trends report showed an increased inventory of 29.92%, while it also represented a decrease in closings of 12.30% compared to the previous month, indicating a supply increase and demand decrease.
July Inventory Reflected the Flow of the Market
While the average closed price was 16.40% higher this July than July 2020, and July represented the lowest number of active properties at month’s end in July’s history with an inventory of only 4,056 properties, this number actually increased from June to July, reflecting the flow of the market.
The Luxury Market Continues to Quickly Move and Remains Strong
Both the attached and detached segments showed close-price-to-list-price ratio averages at 101.39% and 103.40%, respectively. In the attached segment, the Luxury Market had slightly more inventory month-over-month, more pending sales, fewer closings, a lower sales volume and less days in the MLS. There was also an increase in the close-price-to-list-price ratio and in the price-per-square-foot. Meanwhile, month-over-month in the detached segment reported less inventory, fewer pending, fewer closed homes, a lower sales volume and a lower average days in MLS.
Overall, Historical Perspective Indicates a Common Transition From June to July
The Denver market indicates that an increase in inventory and a decrease in sales volume is not uncommon in the transition from June to July. With the relative lack of inventory, it can be expected that the balance between supply and demand will stay steady through the remainder of the year.