Denver Real Estate Market Report for July 2018

Inventory has slowly been ticking up each month of 2018, hopefully helping Denver buyers to stay motivated and encouraged when house hunting. Highest average sold prices so far in 2018 was in April for single-family (coming in at $540,105) and June for condos (coming in at $360,702). July did see a dip in these numbers, which has been typical for this time of year due to school starting back up. Fear of rising interest rates could also be a contributing factor. Mortgage rates did see their highest level in 2 months this week, after they had been in decline since mid-June due to fears of a trade war (SLT, CNBC).

According to Freddie Mac mortgage rates had stepped back in mid-June due to declining long-term Treasury yield, which were affected by a trade war. However, “some of those tensions were eased last Wednesday when President Trump and European Commission President Juncker struck a deal to avert a trade war” and mortgage rates returned to their higher numbers reached in early June (Zillow).

Fewer homes sold and a slight increase in inventory could also be due to historically high prices of homes in the metro area, leaving less people able to afford to purchase property. However, when compared to other markets, Denver’s 3.96 percent increase in inventory year-over-year in July 2018 doesn’t come close: “According to Realtor.com, active listings in July were up 44 percent year-over-year in San Jose, 29 percent in Seattle, 19 percent in Portland, 18 percent in San Diego, and 15 percent in Dallas,” (Curbed).

See below for our full report for July 2018 and please let us know if you have any questions. We email this market infographic report on the Denver Real Estate Market each month. To get on the email list, please reach out to marketing@usajrealtystg.wpenginepowered.com and request to be added!

Active Inventory in July 2018: 7,643
- June 2018 Active Listings: 7,436
- May 2018 Active Listings: 6,437
- April 2018 Active Listings: 5,160
- March 2018 Active Listings: 4,619
- February 2018 Active Listings: 4,084
- January 2018 Active Listings: 3,869
- December 2017 Active Listings: 3,854
- November 2017 Active Listing: 5,131
- October 2017 Active Listing: 6,312
- September 2017 Active Listings: 7,586
- August 2017 Active Listings: 7,360
Median Sales Price for a condo in Metro Denver in July 2018 was: $300,000
- June 2018: $305,000
- May 2018: $306,331
- April 2018: $297,000
- March 2018: $295,000
- February 2018: $296,000
- January 2018: $285,000
- December 2017: $285,000
- November 2017: $272,000
- October 2017: $275,000
- September 2017: $268,000
- August 2017 $275,000
- July 2017: $270,100
Median Sales Price a single-family residence in Metro Denver in July 2018 was: $450,000
- June 2018: $452,500
- May 2018: $450,000
- April 2018: $455,000
- March 2018: $440,875
- February 2018: $435,000
- January 2018 was $416,000
- December 2017: $415,000
- November 2017: $405,000
- October 2017: $415,000
- September 2017: $409,000
- August 2017: $410,000
- July 2017: $420,000

An Overview of the National Market:

Lay it on me: Bad news abounds for potential homebuyers

“Mortgage applications hit a near four-year low in July dropping for the third month in a row with a 1.8% decrease in applications during July. So, what’s behind the dwindling demand for mortgages? Lots of things. First and foremost, it’s just really, really expensive to buy a home right now.” – HousingWire

Existing home sales tank, new sales price peak is reached

“Existing-home sales dropped for the third consecutive month during June, according to new data from the National Association of Realtors (NAR). Nonetheless, the median sales price for last month set a new all-time high.” – National Mortgage Professional

Freddie Mac forecasts 2.8 percent spike in 2018 home sales

“A supply and demand imbalance in housing slowed the market’s sales activity during the first half of the year, according to Freddie Mac’s July Forecast. However, the year’s sales volume is on target to beat last year’s levels.” – National Mortgage Professional

Economic growth moderates in early 2018; labor market continues to be strong

“The 30-year fixed mortgage rate has been slightly declining since mid-June and was 4.53 percent in the second week of July. Rates have stepped back because of declining long-term Treasury yields, which continue to be pushed down by anxieties from a potential trade war. Our forecast has the 30-year fixed-rate mortgage averaging 4.6 percent this year, and rising to 5.1 percent next year.”

What’s Happening in Denver:

Nearly all houses in Denver are worth more than they were pre-recession

“The nation is finally starting to fully recover from the housing crash that took place a decade ago, according to a new report from Zillow. In many markets throughout the country, homes are worth more now than they were worth in the pre-recession era.” – Denverite

Apartment construction in metro Denver is outpacing the national trend, accelerating faster than any other city this year

“Developers have completed 7,651 apartments in Metro Denver in the first six moths of 2018. Yardi Matrix, a leading commercial real estate research and data platform, is projecting that 13,739 apartments will be completed in the last six months of 2018.” – DMAR

River Mile developers envision $665 million in new Denver bridges, roads and parks

“Denver has rarely seen a project proposal as large as River Mile — and it will require a major new investment in basic infrastructure, starting as soon as 2019.” – Denverite

Purchase Applications are up 1.2 percent year-over-year

“When you consider tight inventory, rising prices, and interest rates up 0.67 percent year-over-year, this is still strong. Refinance applications, which make up 37 percent of all mortgage applications, are down 29 percent year-over-year.” – DMAR

Report: As income inequality rises across the country, Colorado’s in the middle of the pack

“A new report suggests Colorado falls near the middle of the road compared to other states when it comes to income inequality, at least when its measured by the ratio of the state’s top 1 percent and bottom 99 percent of income.” – Denverite

Increase in Year-Over-Year Home Price

Year-over-year, July 2018 saw a 7.58 percent increase in average sales price. – DMAR

Report for Metro Denver:

Read Denver Metro Association of Realtor’s full report on last month’s Real Estate trends and statistics in Denver here.

And as always, please let us know if you have any questions!