The Denver housing market has cooled rapidly as prospective buyers are shunning larger properties despite a surge in inventory, according to a report.
Sales in the Colorado city, which saw a large influx of new residents during COVID, fell 5.2 percent in June and are down 4.7 percent for the full year.
While new listings fell further, to 11.6 percent in June, they were up over the past year by 7.6 percent.
The number of active properties for sale rose 3.6 percent to 10,584 in the city between June and July.
Compared to July last year, buyers now have 68 percent more properties available, but sales are still declining.
Sales in the Colorado city fell 5.2 percent in June and are down 4.7 percent for the year.
While there are now enough condos and townhomes priced above $2 million to cover 16 months of sales, the property mentioned above is priced at $5.7 million.
The report, compiled by the Denver Metro Association of Realtors, says the median price for a single-family home was $660,000 last month.
Median prices for condos and townhomes rose 1.2 percent from June to $415,000.
Due to the cooling market, there is now a reported seven-month supply of single-family homes priced above $2 million.
While there are now enough condos and townhomes priced above $2 million to cover 16 months of sales.
Libby Levinson-Katz, president of the association, said in the report: ‘The adage in Denver is if you don’t like the weather, wait 15 minutes, and that advice holds true for many sellers, as patience can be the key to finding the right buyer.
‘Incredible properties can languish on the market, while unremarkable homes sell immediately, leaving many wondering what is going on.’
While Colleen Covell, a member of the associations committee, added: ‘This slowdown in activity resulted in a tremendous increase in available inventory,
‘Sellers with homes priced at $1.5 million and up are experiencing the toughest buyer’s market in years.’
There are now enough condos and townhomes in the city priced above $2 million to cover 16 months of sales.
Denver isn’t the only city experiencing a chill after the pandemic surge; other major metropolitan areas across the country are taking a hit.
Among the ten real estate markets experiencing the fastest slowdown, six are located in Florida and two are in Texas.
In West Florida, real estate markets are experiencing the most extreme decline.
The decline is attributed to an increase in natural disasters, a surge in new construction, sky-high insurance costs and a waning homebuying boom in the pandemic era, according to Redfin data.