Summer 2024 Market Update

Are we in a buyer's market?  Is it just interest rates impacting the market? What will the future look like?  These are all questions we are being asked by our clients.  Listen in to this market up with statistics and data for this summer as well as some predictions for the upcoming fall season in Summit County, CO and Denver, CO.

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Transcript

Welcome to Mountain Real Estate, where we bring you the latest insights on real estate from Denver to Summit County, Colorado. I'm your host, Candice Day, a realtor, investor, engineer, mom, and Colorado native. Welcome to Mountain Real Estate. Today I'm going to provide an update on our summer real estate season both in Summit County and in Denver. So I'm going to start with Summit County and in general we have seen more listings and a softening buyer demand and that leads to more choices for buyers than we've seen for a long time and for sellers that means they need to be competitive and differentiate their property from others. So I'm going to start with Summit County sold listings. So this year we in June we saw 77 sales, which is pretty low compared to past years. We saw 84 last year, 126 in 2022, 206 in 2021, and then 116 in 2020 and 118 in 2019. So we've been over 100. over 200 in the peak of COVID, and this year we're down to 77. So we're really seeing our sold listings decrease. We're also seeing our pending listings decrease. So in June in Summit County, we were at 115 properties that went pending, so went under contract. And for comparison in 2023, we were at 119. In 2022, we were at only 81 because there was very little on market. 2021 we're at 189, 2020 we're at 252, and 2019 we're at 165. So we're lower than pre-COVID levels as far as pending listings. And then as far as new listings, this is how much is coming on the market in June, we saw 300 new listings. So in the first few days of July there are already 52 new listings. We've seen a lot of new listings come on. this year and really only a handful of those are under a million dollars. So we have about four and a half months of inventory when you take out the deed restricted listings. We're also seeing showings go down. We're seeing an average number of 2.7 showings per listing in June. So back in 2020 that was as much as eight. And now we're back down to two. So we're back down to pre-COVID levels, about the same as we are at our kind of low season in 2017, 18 and 19. So that's our Summit County update. Really, we're seeing the demand softening, but the sales price is still going up. We're still seeing our median sales price in Summit County over a million dollars. It's not going as fast as it was, but it's not. going down, which some people are expecting, we'll see how this buyer demand translates into price changes over the next couple months. So now shifting over to a Denver market update for the summer of 2024, we're seeing inventory levels indicate a balanced market. So we have seen inventory increase. The balance market in Denver, we say four to six months. Right now it stands at three months, but based on where we've been and where we are, it really feels like the leverage has shifted from sellers to buyers. We're seeing buyers take their time, we're waiting to see what interest rates do, everyone was anticipating a little bit of interest rate relief, and when that didn't come, it really put some pressure on the real estate market. Hopefully interest rates will get some relief later this year. That's all the indications based on the economy and what the Fed is saying, but it's not gonna be as much as we were hoping. So really all of these predictions are really just that, predictions. And we really have to wait and see what the numbers tell us and what the Fed does. We're seeing sellers motivated to move and they will negotiate. So we're seeing some... sellers actually finding some concessions. We saw in May, 56% of transactions closed with a seller concession with an average concession around $9,000 and a median concession of around $7,000. Compared to May of last year, only 47% of transactions had concessions and they were averaging $7,700 with a median of $5,000. So we're seeing more concessions and larger concessions. We've seen active listings increase by about 11% month over month. So we're at around 10,000 active listings, which is about 68% more than last year at this time. So we're really seeing inventory climb. As far as buyers, we're seeing buyers who are out there willing to brave the interest rates or buyers who have cash. and they're getting a little bit more flexibility. So again, we're seeing the median sales price still stay fairly steady. In May, it was around $600,000. In June, it's $608,000. Compared to last year, it was $599,000. So we're still seeing things go up. They're not going up very fast. That's only about a 1.5% increase year over year. But we are seeing the days on market increase. So in June of last year, the average day on market was around 23 and this year it's around 27. So it's about a 17% increase. So things are taking a little bit longer to sell, but prices are so far holding steady and we are seeing more listings. So that is our Denver market update. So if you have any questions on what's happening in the real estate market, In Denver or Summit County, feel free to reach out. Have a great summer. Thanks for joining us today on Mountain Real Estate. I'm Candice De. If the mountains are calling you, reach out to me. See you next time.