Evidence of the cooling Denver area home sales market mounted in June as the amount of inventory across single family homes and condominiums grew considerably from May to June, according to a report released Wednesday by the Denver Metro Association of Realtors.

The amount of homes for sale at the end of June stood at 6,057 — a 65.85% spike from May and almost double the amount of homes available for sale in June 2021.

While June almost always brings more inventory, the increase is usually around 8%, said Dan Turner, Realtor and owner of South Denver Digs Realty.

“We must remember that 2021 was the lowest record inventory at 3,122 listings,” Turner said via email. “Record high was 31,900! Although it was a big jump, we are still much lower than we need to be for a balanced market.”

Both the average sales price — $719,210 — and median sales price — $615,000 — in June were basically flat from the previous month. But they showed a double-digit percentage increase from June 2021 — 12.11% for the average sales price and 12.84% for the median sales price.

“As month-end active inventory skyrockets, the Denver Metro hit a new record for the average price of attached (condominium) properties at $504,193,” Andre Abrams, chairman of the association’s Market Trends Committee, wrote in the report. “The dichotomy of these stats reflects the first six months of this year (the record high prices) and where we are going (the dramatic increase in inventory).”

The amount of closings in June dropped from May (-12.42%), and year-over-year (-23.63%), to 5,090 homes sold. The average days on market climbed to 10 days in June, up a day from May and the same as June 2021.

With the increased inventory, “expect more balance and multiple months with prices remaining stable,” Abrams wrote. “This is also reflected in months-of-inventory, which is now at 1.19. This is the first time it has been above one since June of 2020. The stock market, inflation and crypto currency have all taken a hit in the last few months. Housing will eventually be a victim to the economy as a whole. Just how much is yet to be seen.”

“There’s definitely some unrest out there,” Turner said.

Price reductions are becoming the norm as sellers adjust for changing market conditions, Turner said.

“The only ones not cutting prices are the very select, well-done top-of-the-line houses that are in tip-top shape that are getting full-price offers, or bidding wars now,” he said.

His office’s calculations show 27% of listings had price reductions in June, Turner said.

“This increase in supply will impact pricing, days in the MLS (Multiple Listing Service) and the relationship between buyers and sellers … but not yet,” Abrams wrote. “The same can be said for interest rates, which have negatively impacted buyers’ purchasing power.”

Turner used the example of buyers who had been pre-approved for $875,000 in December, and now are approved for $725,000.

“That is an entirely different home class than they were looking at before,” Turner said. “It priced them out of the neighborhood where they wanted to live. They want to upgrade, but they are putting the brakes on the search because of increased cost.

“As far as sellers are concerned, I do not think it is time to panic. But they need to be realistic with their pricing. I am a firm believer that the details matter. Sellers will have to do the small stuff and will have to fix broken items when they sell. I think homes will still sell, just not in the first weekend for well over asking price.”

The association uses data from the 11-county metro Denver area when it compiles its Market Trends Report.