Denver June Home Sales Report

 In Market Reports, Real Estate News

Denver June Home Sales Report

In the Metro Analysis and Forecast report for June, extensive data analysis reports give insight into markets, including sales and pricing conditions in Denver, remain normal.

  • We are watching Denver as the underlying fundamentals, such as job growth and resale price appreciation, begin to erode.
  • Builders report healthy sales in May, but they are using incentives to maintain pace.
  • Incentives have increased YOY from roughly 2%–3% in the spring of 2018 to roughly 6%–7% today.
  • Despite this, cancellations and finished inventory remain modest.

 

Overview of the Markets

Sales and pricing conditions in Austin, Boise, Charlotte, Denver, Fort Worth, Jacksonville, Orlando, Raleigh-Durham, Salt Lake City, and Tampa remain Normal this month.

  • Austin, Texas builders report average YOY price appreciation of 6% and sales rates of 3–5 per community. Roughly half of builders increased prices MOM, and half held prices flat. Small, higher-density product priced below $250K sold briskly. Traffic increased at both entry-level and move-up communities. Builders increased their lot positions YOY in this market, supporting future construction.

 

Normal Sales and Pricing Conditions

  • We are watching Denver as the underlying fundamentals, such as job growth and resale price appreciation, begin to erode. Builders report healthy sales in May, but they are using incentives to maintain pace. Incentives have increased YOY from roughly 2%–3% in the spring of 2018 to roughly 6%–7% today. Despite this, cancellations and finished inventory remain modest.
  • Builders in Salt Lake City report average YOY price appreciation of 8%, which is twice the national average, and sales rates of 2.5 per community on average. Traffic and sales remain strongest at communities offering affordable homes priced below $400K. Builders increased their lot positions YOY in this market, supporting future construction.

 

Sales and pricing conditions in Atlanta, Dallas, Houston, Portland, San Antonio, and Seattle remain Slow this month.

  • We rate sales and pricing conditions in Dallas as Slow and Fort Worth as Normal. Most builders report normal sales rates at 2–4 homes per community in May with mostly flat pricing MOM. Price appreciation averaging 4% YOY matches the national average. North Dallas, particularly the 380 corridor, remains oversupplied with homes priced above $500K, requiring strong incentives. In Fort Worth, builders report fair sales despite low traffic, indicating serious buyers.
  • In Houston, higher than typical incentives at 6%–8% allowed builders to report traffic and sales levels equating to a Normal rating. Most builders held pricing flat MOM, and none reported decreasing pricing. High lot and land prices result in deals not penciling and builders and developers walking from potential projects. This trend indicates a potential pullback in supply relative to demand in this typically supply-rich market.

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