Every market has a season. The Denver housing market is no different. In August, home sales in the Denver area showed a typical seasonal slowdown. With a market as hot as Denver, any cooling can seem like a bigger deal than it is. There were 5,324 single-family and condo/townhome sales in August, a 5.8% drop from July, according to the most recent report by the Denver Metro Association of Realtors. That is fairly typical month-over-month drop this time of the year and is a long way from a meltdown.
Home sales did fall 8.6% from August 2016. However, if you dig into the last year’s statistics, the year-over-year drop this year isn’t surprising. That’s because in August 2016, sales bucked the normal trend and actually rose a bit from July. Also notable is that the average price of all homes sold last month stood at $434,478. That is a 2.75% dip from July, but a record for August. August 2016, in fact, was the first August on record where the average price of all homes sold topped $400,000.
By the numbers, all home prices are up 8.17% from August 2016. And that’s a time when the inflation rate remains below 2%. Another way to look at is that home prices have been rising at 4 times the inflation rates. The good news is, the average price of a single-family home was $483,574, a record for an August, but down 2.21% from July. The average price of a home likely will not top $500,000, a milestone that seemed likely earlier this year.
There were 7,360 homes on the market last month, basically flat from July and up less than a half percent from a year earlier. August of last year marked the lowest inventory of any August on record and last month didn’t give house hunters many more homes to choose from.
What is interesting is that the active inventory of attached homes, mostly townhomes, surged in August. There were 1,726 attached homes on the market last month, a 4.7% increase from July and a whopping 17.2% from July 2016. So, if you want to buy a townhome you have many more choices than a year ago. The single-family inventory of 5,634 homes, dropped 1.2% from July and 3.76% from August 2016. By contrast, the inventory of single-family homes fell 1.21% from July and was down 3.76% from August of last year.