Denver-area home resales enjoyed steady improvement, with rising prices, an increase in available inventory and robust sales in August compared to a year ago, Metrolist Inc. said Thursday.
The August numbers showed a 20 percent increase in year-over-year sales volume the from multiple listing service data company, based in Greenwood Village, from 4,685 in August 2012 to 5,635 homes last month. Prices, meanwhile, fell 1 percent - basically flat - from July to $312,418 — but that’s a healthy 9 percent bump from August 2012’s $285,692 average.
“We expect to see continued high sales velocity and inventory numbers well into the winter months,” said Kirby Slunaker, Metrolist president and ceo. “The impact of seasonality may not be as significant as we’ve seen in years past. Increasing inventory spurred on by a hot early buying season will continue to provide sellers and buyers prolonged opportunities late into the year.”
Sales usually dip in August, as most home buyers like to be settled before school starts.
The inventory of available homes continued to climb, as it did in July, to 10,587 homes. That’s a 6 percent month-over-month increase and the fifth month in a row inventory numbers have climbed.
The Metrolist report stated that rising inventory “providing a stabilizing factor for the market overall.”
“While the available inventory of homes and condos continues to increase over prior months, there is still less than a 7 weeks supply of homes and condos,” the report states.
“By the numbers ... 6,752 homes came onto the market, 6,353 homes were placed under contract, and 5,635 closed for a closed dollar volume of $1.76 billion,” said Gary Bauer, an independent Littleton broker who also serves as the chairman of the Metrolist Board of Directors.
Average days on the market continues to drop as August saw a 39-day average, down 39 percent from the 64-day average logged in August 2012. That average did rise slightly, 5 percent, from July’s 37-day average.
“The low DOM figure indicates a quick turnaround time and continued competitive demand for Denver-area homes,” the report states.
“Rising mortgage rates have impacted the local market slightly, primarily in the mid-level market,” Slunaker said. “Luxury listings are still seeing significant strength, while first time and entry level buyers seem to have taken the changing rates in stride.”
Metrolist of Greenwood Village is metro Denver’s Multiple Listing Service, a database of home sales activity for real estate professionals.