Denver home sales growth streak ends in August as home values keep climbing

Denver’s home sales growth streak ended in August after buyer activity decreased by 6.8% compared to July, according to a new local market report from Redfin.

In all, Denver realtors sold just 5,750 homes in August, nearly 8% below what realtors sold the year before. The dip in sales caused the median sales price to stall at $532,000, representing a 0.6% decline from July, the report said.

However, the drop in sales seems to have no impact on home values. Homes in Denver carry a median off-market value of $490,100, according to the report. The total represents a 1.7% month-over-month increase, and a 14.4% increase when compared to August 2020.

“When it comes to home prices in this market, what goes up stays up,” Redfin Chief Economist Daryl Fairweather said in a statement.

Across the country, home sales were down in 44 of the 85 large metropolitan areas Redfin tracks. Some of the biggest losers include New Orleans, La., and Salt Lake City, Utah, which saw home sales drop by 23% and 16%, respectively.

The report pointed to two reasons for the dip in sales: increasing competition and lower inventory.

For example, homes in Indianapolis, Ind., spent an average of five days on the market in August while just over 4,000 new listings appeared on the multiple listing system (MLS). This represents a nearly 8% drop in inventory and a 29% decrease in time a home spends on the market.

Over 5,800 new listing appeared on Denver’s MLS in August, a 13.1% decrease from a month earlier. The total is also 6.2% below the number of homes listed in August 2020, according to the report.

When both multi-unit and single-unit listings are combined, Denver had a total of 10,222 homes on the market in August, a 20.1% decrease from a year ago, Redfin reported.

Meanwhile, Denver tied other cities such as Oklahoma City, Okla., and Seattle and Tacoma, Wash., for the second-fastest market with homes pending sale for an average of just six days.

Fairweather expects this trend to continue, especially in “hot migration destinations” that offer buyers relative affordability.

“As workers change jobs en masse and enhanced unemployment benefits come to an end, we could see even more households relocate for affordability in the coming months,” he said.

This article was originally posted on Denver home sales growth streak ends in August as home values keep climbing

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