Prices continue to rise, with the median single-family home hitting $466,288
New home listings rose in June in metro Denver, but the pace of sales softened, boosting the number of properties available on the market.
There were 6,796 homes and condos available for sale at the end of June, which was 24.4 percent more than the count of active listingsat the end of May, according to a report Wednesday from the Denver Metro Association of Realtors.
“We are starting to see signs of a much needed market correction and a market plateau may be on the horizon,” suggested Anthony Rael, chairman of DMAR Market Trends Committee, in the monthly update.
June, July and August are the months when the inventory of homes available for sale are most likely to hit a peak. And the number of active listings are under half the historical average, meaning buyers still face a limited selection.
But the 24.4 percent jump was a huge one. Since 2005, the typical increase between the inventory in May and June has averaged closer to 4.4 percent, Rael said.
June saw 7,615 new listings come on the market, 12.2 percent more than in May. Buyers closed on 5,324 homes and condos during the month, a 2.9 percent increase from May, but a 13.1 percent decrease from June 2015.
Randy Hay, a residential broker with Keller Williams Realty Downtown in Denver, said he recently listed a home for $348,000. It is the kind of property that earlier this year would have had multiple showings a day and a quick sale.
“Now it can go days without a showing,” he said. On the flip side, Hay said he can once again show buyers three or four homes in a day without them feeling pressure to make an immediate decision.
“I would love to see a more balanced market. We are pricing so many people out of the market if this continues,” he said of metro Denver’s continued run of double-digit home price gains.
Despite the extra inventory, home prices continued to rise and the average number of days that listings are spending on market dropped to 26 from 30 in May.
The median price of a single-family home rose 0.25 percent in June from May to $396,000, a 10.7 percent increase from May 2015, while the average price rose 2.9 percent month-over-month to $466,288 a 9.7 percent increase year-over-year.
The median price for a condo rose 0.41 percent to $246,000 and is up 13.9 percent year-over-year. The average price of a condo sold dropped 2.3 percent to $291,554 month-over-month, but remains up 12.4 percent on the year.
Interest rates dropped unexpectedly in late June following the Brexit vote, which may have caused some buyers to pause so they could obtain a better deal on their mortgages, the report said.
Hay said he doesn’t see Brexit as that big a factor. Buyers, either correctly or incorrectly, may perceive they have been priced out of the market. But a larger inventory could also bring out home seekers frustrated by the limited selection available earlier this year.