Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

August 2024 | Denver Housing Market Update 🏠

15 Aug 2024 · 2 min

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1:55

In this August 2024 market update, the speaker first outlines a national economic backdrop marked by a three‑year high unemployment rate, recent downward revisions to most jobs reports, and a stock‑market correction. He explains that these macro pressures tend to push the Federal Funds rate lower, which in turn can reduce mortgage interest rates. Turning to the Denver metro area, he reports that the average single‑family home price rose modestly to $786,000, a 0.9% year‑over‑year increase, while condo and townhouse prices fell 6.9% to $450,000. Inventory metrics show active listings slightly down month‑over‑month but up 32.8% year‑over‑year; new listings are down 13% month‑over‑month but up 5.5% year‑over‑year; pending listings dipped 3.7% month‑over‑month but are flat year‑over‑year. The close‑to‑list price ratio slipped to 99.2%, days on market rose to 29 (a 26% year‑over‑year increase), and average showings before contract rose 9% to 13.4. He notes the typical summer slowdown and anticipates that if the Fed cuts rates as the fall selling season begins, demand could rebound and the market may heat up again. The overall tone is analytical and conversational, with a cautiously optimistic outlook for future demand.

Chapters

We're at a 3-year high on our unemployment rate, and 5 out of the last 6 jobs reports have been revised lower. Last week we had a stock market crash, and it's definitely looking like we're in correction territories. This is actually ironically good for mortgage interest rates because when our 401s are taking a hit, mortgage interest rates are actually going to come down along with the Fed funds rate. Now in the greater Denver area, the average price for single-family homes increased to $786,000. That was an increase of 0.9% year over year. The average price of condos and townhouses decreased by 6.9% to $450,000. Our amount of active listings decreased slightly from the previous month, but they're up 32.8%. New listings decreased about 13% from the previous month, but they're up 5.5% from last year. Our demand and pending listings decreased about 3.7% from the previous month, but they pretty much held flat year over year. Our percent of close price to list price decreased slightly to 99.2%, and our days on the MLS increased slightly from last month and substantially from last year to 29 days, which is an increase of about 26%. Our average number of showings before going under contract increased about 9% from the previous month, and that's now at 13.4%. The market seasonally slows down during the summer and then heats back up a little bit during the fall. So we'll see what the Fed does with their decision to reduce rates, and if that coincides with the fall selling season, then we might see an uptick in demand again, and we might see the real estate market heat up.