The Denver Real Estate Market in August 2021
Seasonal market cooling continues for Denver real estate. Prices for detached, single-family homes fell from $696,779 in July to $687,768 in August.
In addition, the average days on the market increased from 8 to 10 as patient buyers looked for the right house at the right price and some buyers took a break to focus on getting the kids off to a new school year.
Looking at both attached and detached, single-family homes, just 5,618 listings closed last month—down 9.6% from the month prior. The average price for both segments also dipped slightly to $614,577.
Still, low interest rates and low inventory continue to drive a competitive housing market.
Looking at data from 1985 to 2020, the average number of total active listings (attached and detached) for August is 16,243. The record high was in 2006 with 31,664 and the record low was set last month with just 3,582.
That's a month-over-month decrease of 11.7% and the second-largest drop on record.
Accordingly, only 5,618 homes closed in August. Just 3,974 of those were detached, single-family homes, a decrease of 9.5% month-over-month and 16.2% year-over-year. And while the average decrease in month-over-month price doesn't reflect it, that's a 14.3% increase compared to the same month last year. And homes sold for an average of 102.6% of the asking price.
If you've been "waiting things out" or "waiting until things really cool down" before you buy, that time has arrived. Still, it's likely that you'll pay more, especially if you continue to wait and interest rates start to creep up again.
The key is getting help from an experienced, real estate agent who will help you navigate this cool yet hot, and completely contradictory market.
A well-connected agent can find a great home that fits your needs but has been on the market for a week or so—or perhaps has returned to the market due to another buyer's cold feet. This is an excellent strategy if you're a contingent buyer, have less cash for a down payment, or simply don't want to get involved in a bidding war.
To view our full report on Denver real estate market stats for August, click here.
Buying and Selling a Home in the Cooler Months
While spring and summer are the typical busy seasons for buying and selling in Denver, or anywhere really, that doesn't mean your real estate goals need to go into hibernation this fall and winter.
In fact, as the weather and market cool in the coming months, some unique advantages come to the surface.
5 Reasons to Sell
- Serious Buyers – By selling during the “slow” season, buyers are less likely to be browsing and more likely to be focused on closing. You’ll also get fewer looky-loos at open houses.
- Less Crowded Market – During the fall and winter, there are often even fewer listings to contend with, giving your home the opportunity to really stand out from the competition and sell even faster.
- More Time to Buy – Between paid holidays and vacation time (perhaps unused in summer due to Covid), buyers have more free time to house hunt! You can likely pack in more showings, increasing your chances of a quick offer.
- Just in Time for the Holidays – Fall and winter are the seasons for home, family and cozy nights by the fire. If your listing evokes a strong emotional connection in a buyer, closing the deal will be simple.
- Stress Less Next Summer – When the weather warms up, do you want to want to deal with the hassles of packing and moving? By selling in winter, you’ll free up more time for fun.
5 Reasons to Buy
- Less Competition – Between colder weather and fall festivities, fewer people are out house hunting during the fall and winter. That means fewer buyers and offers to compete against.
- Sellers Want to Sell – Moving during the winter isn’t ideal, but a seller’s life changes may require it. And motivated sellers may be willing to negotiate, price, closing times and more.
- Faster Closings – With fewer transactions in the winter months, lenders will often have more time to tackle your loan paperwork, so you can get settled into a new home quickly.
- Certain Problems Are Easy to Spot – Cooler weather can reveal a home’s worst traits like drafty windows, poor insulation, damaged gutters and more. You can either pass or negotiate a great deal.
- Movers are Available – While warmer months are a busy time for movers, it will likely be easier to schedule a company in winter, even score a discount if business is extra slow.
To learn more and have one of our 170+ agents guide your fall and winter real estate journey, please get in touch!
