Home sales have dropped as buyers go missing. This is having a huge effect on the luxury market. As the home sales in the metro Denver area fell in September. According to the monthly update from Denver Metro Association of Realtors (DMAR) this forced sellers to cut their asking prices and is pushing up the inventory of properties available for sale at an unprecedented rate.
Steve Danyliw, chairman of the DMAR Market Trends says, "The housing inventory and home price adjustments are normal and expected. What's not normal? Sales of single-family homes prices over $500,000 dropping 33% from August to September. For those sellers, that's real turbulence."
These has been signs of the market cooling down since the beginning, but has basically frozen in September, this being said it means sellers faced a bumpy ride, especially those of the higher-end homes.
The number of single-family homes sold in September dropped 30.5% from August, across all price ranges, and is down 21.4% compared to September 2017. Condo sales have fallen 42.9% on the month and are down 17.3% from 2017. Normally, the inventory of homes available dips slightly in September, but now buyers after years of coping with lack of affordability, are now pulling back.
The inventory of homes and condos available at the end of September shot up to 8,807 an increase of 7.04% from August and a 16.1% increase compared to 2017. The luxury end of the market, which was doing quite well this summer, was hit the hardest. With sales of homes worth $1 million or more fell 44.4% between August and September.
The median price of single-family homes that sold in September dropped 3.8% from August to $428,000 but still remains higher with 6.1% from the same month a year earlier. The median condo price rose 1.73% to 301,625 last month and is up by 12.8% from the previous year.