Neighborhood Inscope

Another Positive Sign For Denver Home Buyers: Inventory of Homes For Sale up 15.5% in June From Prior Month.

By Dr Denver H. Bubble

Tue Jul 10 2018

There were many signs the housing market in the metro Denver area is cooling. First, home prices were up only 1.05% from the prior month in June. Average selling price for homes was $492,029 in June up from $486,913 in May. Next, only 5,434 homes sold in June, this is down almost 6% from May and 11.5% from June 2017. This is a sign that first-time buyers are being priced out of the market and without willing buyers, prices cannot continue to climb.

The biggest change is the continued double-digit increase in housing inventory. Inventory was up 15.5% month over month and 5.3% year over year to 7,436. The supply is still rather tight at only 1 month of turnover. Condominiums supply was also up 14.2% month over month and 7.4% year over year.

These are all bright red warnings signs that the market may be at its peak. We saw two straight months of 1% prices increases in homes and two straight months of double-digit increase in housing inventory. We are looking forward to July data to see if we can confirm our trends that the bubble is about to pop.