The August dog days of summer are here. Housing inventory continues to climb toward historical averages and there are currently 3.8 homes for sale for every buyer in the Denver market. However, shadow inventory of withdrawn or expired listings, do not show up in this data. Some sellers are taking losses just to move on and homes may be worth even less in the future. Although prices have remained flat, could the momentum continue to shift towards a decline? Denver led the nation in price reductions for the month of June with 37% of sellers lowering their asking price.

As talks of replacing Fed Chairman Powell enters the news cycle, the bond market is signaling that even if rates are lowered, mortgage rates may not follow suit. Budget shortfalls at the local and state level have elected officials scrambling to control optics, and protect their jobs. The Governor has ordered a special legislative session, and a hiring freeze. Higher taxes, fees and bond proposals will shore up government spending, but TABOR is in the cross hairs. These solutions all come at a continued cost to affordable living standards here in Colorado.

Buyers have a meaningful opportunity, with so many motivated sellers, but softening prices are only part of the equation. Affordability will drive demand. Today's 30 year fixed rate is at 6.57%, this is the low for the year. We are in a dynamic market, and expert representation always pays off, regardless if you are buying or selling.