Digging into the August MLS stats:
6,416 New Listings came on the market.
5,383 homes were placed under contract.
5,088 homes Sold and Closed.
The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver metropolitan area. Reports include data for Adams, Ara pahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the report was sourced from REcolorado® (August 2015) and interpreted by DMAR.
At the end of August we closed out the month with:
7,587 Active Listings which represents a 1.57% increase over the previous month, which was still 6.55% less than we had available in August 2014. Thus inventory continues to lag behind demand, a seller’s market.
One of the issues is the significant decrease of 15.53% in new listings of detached Single Family Homes. This is not necessarily uncommon as August is less of a month of transition as seasonally there is a marked decrease in inventory hitting the market during the last quarter of the year.
Finally the Average and Median Sold prices remained relatively unchanged from the previous month at -0.23% to $410,525 and -0.21% to $349,250 respectively.
Now we all await the decision by the Federal Reserve concerning the Fed Funds Rate. While the jury is still out concerning trends, I am one of the few brokers who feels a rate increase is good. Yes, such an increase may lead to higher interest rates for mortgages and conversely prices for homes may adjust slightly downward. However most of my peers agree the market may be a bit over-bought and low interest rates are letting buyers purchase based on monthly payment versus underlying value.
An increase in interest rates by the Federal Reserve usually means inflation may be on the horizon. In general controlled inflation i.e. 2% annual is an overall positive for housing prices. Even with a 25 basis point interest rate increase, mortgage interest rates will continue to be historically low.