While Metro Denver home prices decreased slightly for the second month in a row, the number of homes for sale also dwindled, according to the latest Market Trends report from the Denver Metro Association of Realtors.

Those conditions continue the sellers’ market that’s dominated 2021.

There was some slight relief for buyers, as the average days on market climbed to 11 in August, up slightly from the 9-day average in July. The average sales price fell 1.1.% to $614,577 — the second month in a row for a slight decrease. But that average was still 14.2% higher than August 2020’s average sales price.

As August typically brings a slowdown for the real estate market, analysts are trying to figure out whether it’s seasonal or signaling a broader market correction.

“What felt more dramatic than a bad first day of school was the month-end active inventory dropping 11.69%,” said Andrew Abrams, chairman, in the report. “Even though the inventory drop was similar to the one seen in 2020, historically the change in inventory is relatively consistent from July to August. With both inventory and new listings decreasing, the short-lived ‘loose grip’ on inventory is starting to tighten once again.”

The 11-county metro Denver area had just 3,582 residential homes for sale at the end of August, both single family and “attached” product like condos or townhomes. That’s down from the 4,056 available in July, and 35% below the inventory available in August 2020.

“If no one were to put a property on the market for 19 days, there would be nothing to sell in the entire Denver Metro area,” Abrams said.

The lowest amount of inventory available came in March, when there were just 1,921 homes available for sale. Bidding wars were common as buyers fought for the few available for sale. The highest level of July inventory in the metro Denver Market came in 2006 with 31,989 homes available for sale.

“It feels like things have slowed more than maybe the numbers reflect,” said Libby Levinson-Katz, a 15-year broker with Kentwood Cherry Creek specializing in the luxury market. “It’s still a strong seller’s market. Any time you have less than three months of inventory, it’s still a seller’s market. But things are not necessarily selling in a day, or weekend now. It’s anywhere from one-to-three weeks.”

As far as some luxury market insights (homes costing more than $1 million), Levinson-Katz said there’s more of them to be had as homes that were maybe listed at $900,000 were getting bid up to more than $1 million.

“As prices started to escalate, more and more homes were finding their way to the luxury market,” she said.

Deals can still be found in the “attached” home luxury market, she said, as buyers shied away from condos and townhomes in urban settings as the pandemic took hold.

“Just this past month, the average days market went from 30 to 60 days for that market, and listings are down like 74%,” said Levinson-Katz. “That means there’s deals to be had in the luxury attached market.”

Some other interesting factoids from the report:

• The most recent S&P/Case-Shiller U.S. National Home Price Index showed Denver had a 19.6% increase year-over-year, while the top three markets of Phoenix, San Diego and Seattle grew 29.3%, 27.1% and 25% respectively.

• “As home and property values continue to skyrocket in Denver, we can anticipate the next 10 years of growth to expand into the peripheral neighborhoods that are already seeing steady changes such as Regis, Chaffee Park, Sunnyside and West Colfax.”

• The largest condo development in downtown Denver since 2009 is set to break ground at 18th Street and Glenarm place, as Vancouver, Canada-based Amacon finalized plans for a 461-unit complex called Block 176. It’s where Shelby’s bar used to be.