Metro Denver’s housing market is undergoing a significant recalibration, with an unprecedented 14,000 unsold homes on the market in June, according to a report from the Denver Metro Association of Realtors (DMAR). This substantial inventory, coupled with a slowdown in sales, indicates a shift away from the assumptions that dominated the early months of 2024. Currently, the supply of unsold homes represents a 3.6-month market, marking the most sluggish resale environment the region has experienced since 2011. Buyers and sellers alike are grappling with a market demanding adaptability and realistic expectations, having initially anticipated lower interest rates, heightened competition, and guaranteed price appreciation. Amanda Snitker, chairwoman of the DMAR Market Trends Committee and a local Realtor, aptly describes the situation as a ‘recalibration,’ emphasizing that those clinging to outdated beliefs are contributing to ‘hesitation, missed opportunities, and stalled deals.’

In June, sellers introduced 5,929 new listings to the market, mirroring the volume from last year. However, this influx of supply failed to offset the decline in sales, allowing the inventory to continue its upward trajectory. The number of closings decreased by 9.6% compared to May, totaling 3,864, and also represented a 1.6% reduction from June 2024. Simultaneously, the number of active listings rose by 3% over the month and a substantial 37.1% year-over-year, reaching 14,007. Despite moderated price gains, buyers haven’t yet witnessed the significant discounts that could facilitate purchases.

The median price of a single-family home reached $665,895 in June, a slight increase from the $665,000 recorded in May and a 0.9% rise compared to June 2024. Conversely, the median sales price of condos and townhomes remained constant at $400,000. This represents a 2.4% decrease from the $409,900 recorded a year prior. Notably, higher-end homes are experiencing a greater accumulation of inventory, with luxury condos priced between $1.5 million and just under $2 million holding a 14-month supply.

One particularly noteworthy sale was the 223 Garfield St. property in Denver, which sold for $4.4 million, and the 1700 E Tufts Ave. estate in Cherry Hills Village, an 11,062-square-foot property on a 2.5-acre lot, which fetched $6.8 million. The median number of days listings require to go under contract increased from 13 in May to 18 in June. Remarkably, a high-end condo that had been on the market since April 2022 finally sold after a lengthy period of 21 months. For the first half of 2024, new listings have increased by 14.5% compared to the same period in 2023, while closings have decreased by 1% and the median days on market have risen by 46% to 19 days. Median home and condo prices stand at $600,000, aligning with the levels observed in the first half of 2022 – a period considered the peak of real estate activity in the current cycle.