Home sales in metro Denver decreased by 7 percent from July to August, accompanied by a dip in prices, but the cooling of the market is the result of an annual end-of-summer slowdown in home-buying.
“As kids head back to school, we tend to see a slowing of the housing market; this year is no exception,” said Kirby Slunaker, president and CEO of Metrolist, which released its monthly real estate data this week. “This summer selling season was strong, and many areas remain very active, with buyers quickly making offers on properties that are priced right.”
Metrolist’s report also shows a 2 percent decrease in average sold price in August, from $335,427 to $329,396.
Year-over-year comparisons showed similar trends in number of sold listings in the metro area, with a 7 percent decrease from 5,732 in August 2013 to 5,346 in August 2014.
But prices increased year-over-year in August, with the average sales price increasing 6 percent from $309,905 in August 2013.
Supply continues to be an issue in the market, with 6,071 new listings entering the market in August. This represents a 13 percent decrease in new listings from July and an 8 percent decrease from August 2013.
Active listings dropped by 14 percent from 11,021 in August 2013 to 9,623 this year.
“The market absorption rate continued to indicate a high level of demand for properties,” Metrolist said in its report. “There was a supply of just eight weeks of inventory at August month-end.”
Continued demand for homes is reason for confidence among the real estate community, in spite of August’s decreases.
“Despite the August trends showing a slowdown in the market, many brokers, including myself, remain confident the market will bounce back in September, and the selling season will remain strong heading into fall and throughout the holidays,” said Anthony Rael, chairman of the market trends committee for the Denver Metro Association of Realtors.