As expected, the housing market cooled off in July, signaling the typical seasonal shift to a slight retraction in the market through the fall.
• The average sold price for detached single family (DSF) and attached single family (ASF) homes decreased from the previous month by 1.7 percent and 3.8 percent, respectively. However, compared to July of last year, the upward trend continues with prices increasing 6.4 percent and 11.3 percent, respectively;
• Inventory and days on market (DOM) for both DSF and ASF were slightly up compared to the previous month, but both metrics still remain well below historical averages; and
• The percentage of homes selling in 7 days or less declined to 53.7 percent.
With prices stabilizing, inventory increasing and the speed of the market slightly slowing, buyers should find the market a bit less competitive and frustrating. Another consideration for those looking to buy a home is the opportunity cost of renting vs. buying. Based on a $1,500 monthly mortgage payment* – which is around Denver’s average monthly rent of $1,420 – if prices appreciate by 4 percent, one will save more money than renting just three years after buying and nearly $150,000 by remaining in the home for 10 years.
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or firstname.lastname@example.org. I am never too busy for your referrals.
* 30-year mortgage at 4.5 percent, principal and interest only
Based on information from REColorado®, Inc. provided by Land Title for the period of July 1, 2017, through July 31, 2017, for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson Counties. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.