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Denver's hot housing market signals return to normalcy

After months of bidding wars, rising prices and extreme concessions by buyers, realtors said the market is starting to look normal.

DENVER — Frustrated would-be homebuyers who gave up on their search this spring may find more success now – a new market trends report by the Denver Metro Association of Realtors (DMAR) found. 

In the group's analysis of the metro area's housing market in July, realtors noted a return to normal behaviors after more than a year of extremes.

"We're starting to see a return to normalcy," DMAR Market Trends Committee chair Andrew Abrams said. "That looks like seasonality."

What Abrams called the "buyer frenzy" usually winds down around July 4. This year, it scaled back toward the end of June, he said, capping off a year and a half of demand outpacing supply.

Homes in July still sold fast – off the market in an average of eight days this July compared to 24 days in 2020. But Abrams said the pace of home sales is starting to slow. 

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Rather than a home being sold by the end of the week, some are still open for offers past the weekend. The bidding wars of months past appear to be winding down.

Prices, however, are holding steady at significantly higher levels than last year. The median close price for a detached home in July was $600,000. A year ago, the median price was $100,000 less.

RELATED: Nearly 75% of Denver homes selling within 1 week, according to study

"We've been going almost 90 miles per hour for almost 18 months now," Abrams said. "What happens when you take your foot off the break? You don't start going in reverse. You just start going slower. That's what we're seeing in the market."

Lower interest rates are still driving people into the market. Abrams said buyers who were burned out earlier this year may have a better experience now, with more access to home showings and fewer races to enter bidding wars.

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