July 4th slump and overall cooling trend in Greater Metro Denver.
The month of June has now caught up to the cooling trend I've been reporting in the weekly reviews. It's important to reset seller expectations as we head into the back part of our summer months that their home may not be under contract in the first weekend. Inventory rose 27.8% month over month for detached single family and up 22.3% for attached single family while pending transactions fell by -19.8% and -17.5% respectively. This creates a summer shift in the relationship between supply and demand which made prices stabilize with average home prices coming in at $803,258 for detached homes and $502,106 for attached homes. Our months of inventory is now above 1 month coming in at 1.1 months of inventory up from the 0.3 months of inventory back in January and February signaling to buyers an opportunity to have some negotiating power in the transaction.
As we head into the latter part of summer we can expect the following to continue to rise, months of inventory, active supply, days on market and the rate of homes selling for at or under asking price. Multiple offers cooled significantly by -52.9% from the previous month to only 20.6% of detached homes selling for over their asking price.
In the week of June 29th- July 5th we saw active inventory rise by another 10.3% week over week. This is not due to a significant amount of new homes being listed but because pending transactions dropped -23.1% over the holiday weekend. Inventory is having an opportunity to age in our market. Months of inventory is now 1.3 months of inventory as of this last weekend which is the highest it has been since quarantine in 2020. This allows for buyers to get back to a place where they can negotiate and reserve their right to inspection and appraisal deadlines. If you had buyers who tapped out back in the heat of January and February they have an opportunity to return to the market and experience a significantly less competitive environment.