Denver’s housing market is languishing this summer.
The number of homes for sale keeps rising as high borrowing costs slow down deals. In July, inventory shot up 68 percent compared to the same time last year, according to a report from the Denver Metro Association of Realtors.
Inventory has been rising for months. Spring and summer are typically the busiest times for house hunters, but activity has been relatively slow throughout the summer.
The glut of available homes is a result of buyers sitting on the sidelines with mortgage rates the highest they’ve been in decades. But for those that are willing – and able – to stomach higher interest rates, there’s more to choose from in and around Denver than there has been in years.
“Buying now allows for a thoughtful search with room for negotiation and a refinance at a later date,” the association wrote in the report. “Some price ranges, and areas of town, have become a buyer’s market due to the number of available options.”
Borrowing costs could start falling soon. U.S. central bankers are signaling that they’ll be ready to cut interest rates when they meet again in September now that inflation appears to be largely under control. That could make it a home more affordable, but it’s also likely to increase competition from other buyers.
Prices have declined slightly while people wait for mortgage rates to come down. The median price dipped to $600,000 last month, down about $1000 from the month before. That’s still roughly $10,000 more than the same house would have cost at this time last year.
