Originally printed in The Denver Post.
The number of homes for sale in the Denver housing market increased significantly in June, while home sales decreased, indicating a cooling of the market, Metrolist said in a report Wednesday.
Available home listings increased 12 percent from a previous record breaking month-over-month spike but there are still 16 percent fewer homes on the market than there were at this time last year, said Metrolist.
The total supply of Denver-area condos and single family homes would last about 60 days.
Meanwhile, home sales experienced a minor slowing in June, which was coupled with a decrease in the days on market to 43 days, signifying not only a competitive balance of available listings and local demand but a clear race to lock in housing contracts before interest rates go up, said the report.
"The Denver housing market is finally seeing some relief from our long-term undersupplied condition," said Metrolist CEO and president Kirby Slunaker. "We're still seeing strong sales figures, which were coupled with another jump in sales prices - its clear buyer and seller confidence remains high."
Average sold prices increased three percent month-over-month averaging just under $320,000. Denver-area prices are seven percent over average price in June 2012, demonstrating strength and stabilization within the Denver housing market, said Metrolist.
Metrolist noted that rising interest rates "clearly have a significant impact" on the marketplace as some buyers have found their buying power reduced.
Independent real-estate analyst Gary Bauer said that the Metrolist numbers show that the homes for sale in June were 9,187 or up 973 homes from May's 8,214, accounting for the 12 percent increase in inventory.
"By the numbers, the month of June ended with an inventory of 9,187 homes; 7,645 homes came onto the market; 7,420 homes went under contract; 5,566 homes closed with a closed dollar volume of $1.77 billion," said Bauer.
He noted that June "traditionally starts slow as everybody leaves town as soon as school is out."
Howard Pankratz: 303-954-1939, email@example.com or twitter.com/howardpankratz
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