Denver Real Estate Market Report: July 2024 Summary
As we moved through the summer months, the Denver real estate market showed signs of seasonal cooling, with slight fluctuations across key metrics. However, this period of stability provides unique opportunities for both buyers and sellers, particularly in the luxury and second-home markets. Here’s a breakdown of the key trends from July 2024:
Market Activity Overview
July traditionally sees a slight slowdown in the real estate market due to holidays and summer vacations, and this year was no exception. The number of home closings in the Denver Metro area was slightly lower than last year, down by less than 1%, and similarly decreased by 1% from June. Despite this, the median closed price remained steady at $600,000, reflecting a 2% increase year-over-year. This stability suggests a resilient market that continues to maintain strong value, particularly appealing to those looking to invest in luxury properties.
Inventory and Listings
The market saw an influx of new listings, with sellers adding 5,342 homes to the market, marking an 11% increase from last year. However, compared to June, new listings were down by 7%, a typical trend for the time of year. Standing inventory levels have reached a decade-high, with 10,541 active listings in the Denver Metro area, representing a 60% increase from last year. This rise in inventory offers buyers a wider selection of homes, which is particularly advantageous in the higher-end market segments where buyers are often more discerning.
Buyer Behavior and Pending Sales
Buyers are taking their time, with homes spending a median of 16 days on the market before going under contract—three days longer than in June and seven days longer than last year. This extended decision-making period can be attributed to a more patient approach by buyers who are watching interest rates and evaluating their options carefully. In July, the number of pending sales was 4% higher than last year, indicating sustained buyer interest despite the market’s seasonal cooling.
Luxury Market Insights
The $1-2 million price range continues to show robust activity, with 401 closings and 575 new listings in July. Homes in this range were available for a median of 17 days before going under contract. This demonstrates ongoing demand for luxury homes, even as the broader market cools. The higher inventory levels offer luxury home buyers more choices, making it an opportune time to enter the market.
Backyard at a recently sold Iron Works listing in Virginia Village, Denver
Rental Market Dynamics
The rental market also saw a notable uptick, with 373 properties leased in July, a 6% increase from last year. The median leased price rose by 3% to $2,995, indicating continued demand for rental properties in the Denver Metro area. This trend is particularly relevant for investors considering the purchase of rental properties or second homes intended for lease.
Conclusion
July’s data points to a stable yet cooling Denver real estate market, where both buyers and sellers can find opportunities. For sellers, especially those in the luxury market, the high inventory levels suggest the importance of competitive pricing and strategic marketing to stand out. For buyers, the increased selection and slightly longer decision-making windows provide the chance to find the perfect home without the intense competition seen in previous months. As always, staying informed and working with a knowledgeable real estate professional is key to navigating this dynamic market.
Whether you’re looking to buy or sell a luxury home or simply exploring your options, the current market conditions present unique opportunities that can be leveraged to your advantage. Contact Iron Works Realty today to discuss how we can help you achieve your real estate goals and make the most of Denver’s dynamic market.
