By Dr Denver H. Bubble
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.