The COVID property hotspot close to stunning nature that's now cooling rapidly as its housing market is flooded with high-end listings

The housing market in Denver has cooled rapidly with prospective buyers shunning larger properties despite an increase in inventory, according to a report. 

Sales in the Colorado city, which saw a huge influx of new residents during COVID, dropped 5.2 percent in June and are down 4.7 percent across the year. 

While new listings have dropped even further to 11.6 percent in June, but have increased over the past year by 7.6 percent. 

The number of active listings have rose 3.6 percent to 10,584 in the city between June and July.

Compared to July of last year, buyers now have 68 percent more listings available to them, but sales are still down. 

Sales in the Colorado city dropped 5.2 percent in June and are down 4.7 percent across the year

While there is now enough condos and townhouses priced above $2 million to meet 16 months worth of sales. The above property is priced at $5.7 million

The report, compiled by the Denver Metro Association of Realtors, say that the median price of a single family home was $660,000 as of last month. 

The median prices of condos and townhomes rose 1.2 percent from June to $415,000.

Due to the market cooling, there is now a reported seven-month supply of single-family homes priced above $2 million. 

While there is now enough condos and townhouses priced above $2 million to meet 16 months worth of sales. 

Libby Levinson-Katz, chairwoman of the association said in the report: 'The adage in Denver is that if you don’t like the weather, wait 15 minutes, and that advice rings true for many sellers, as patience might be the key to finding the right buyer.

'Amazing properties can languish on the market, while unremarkable homes sell immediately, leaving many to question what is happening.'

While Colleen Covell, a member of the associations committee, added: 'This deacceleration in activity resulted in a tremendous increase in available inventory,

'Sellers with homes priced $1.5 million and above are experiencing the toughest buyer’s market in years.'

There is now enough condos and townhouses in the city priced above $2 million to meet 16 months worth of sales

Denver is not the only city cooling down after a pandemic boom, with other major metropolitan areas around the country being affected. 

Among the ten housing markets experiencing the quickest cooldown, six are located in Florida, with an additional two in Texas.

In western Florida, housing markets are experiencing the most extreme drop.

The decrease is attributed to increasing natural disasters, surging new constructions, sky-high insurance costs and the decreasing pandemic-era home buying boom, according to data from Redfin.