With low supply and strong demand, the Denver market has never been this hot
Just four months ago, the State of Colorado announced a “stay-at-home” order and life came to a grinding halt. None of us have experienced a pandemic that causes an economic shut down, yet slowly but surely we have started to adapt to a new normal. Unemployment is still high and we just received the worst quarterly GDP report on record contracting 32.9% on a quarter-over-quarter, annualized basis. However, the Denver housing market has been a bright spot with an amazing V-shaped recovery.Greater Denver Sold Price Summary for July 2020
Just four months ago, the State of Colorado announced a “stay-at-home” order and life came to a grinding halt. None of us have experienced a pandemic that causes an economic shut down, yet slowly but surely we have started to adapt to a new normal. Unemployment is still high and we just received the worst quarterly GDP report on record contracting 32.9% on a quarter-over-quarter, annualized basis. However, the Denver housing market has been a bright spot with an amazing V-shaped recovery.Greater Denver Sold Price Summary for July 2020
- Single Family Average $592,576 – Up 10% YoY
- Single Family Median $499,950 – Up 8% YoY
- Condo/Townhome/Multi Average $381,216 – Up 7% YoY
- Condo/Townhome/Multi Median $381,216 – Up 7% YoY
Active listings have dropped to unprecedented levels
The year started with low inventory, only 4,114 homes available, and anything that came on the market quickly went under contract. Average days in MLS dropped to 20 days in April and month supply of inventory was at 1.2 (both all-time lows). During the stay-at-home order, COVID-19 suppressed the number of homes coming on the market with only 4,351 new homes coming on the market in April 2020, 2,569 fewer than in April of 2019. We usually see inventory peak anywhere between August and September, but this year we may have already seen it in May with 6,347 homes. Expect inventory to continue to be low as we transition into the autumn market with kids returning to a new version of school. Looking further into 2020, inventory will drop even further when housing cycles enter the holiday/winter market.Active and New Listing Summary for July 2020
The year started with low inventory, only 4,114 homes available, and anything that came on the market quickly went under contract. Average days in MLS dropped to 20 days in April and month supply of inventory was at 1.2 (both all-time lows). During the stay-at-home order, COVID-19 suppressed the number of homes coming on the market with only 4,351 new homes coming on the market in April 2020, 2,569 fewer than in April of 2019. We usually see inventory peak anywhere between August and September, but this year we may have already seen it in May with 6,347 homes. Expect inventory to continue to be low as we transition into the autumn market with kids returning to a new version of school. Looking further into 2020, inventory will drop even further when housing cycles enter the holiday/winter market.Active and New Listing Summary for July 2020
- 5,726 Active Listings – Down 30% YoY
- 6,987 New Listings – Down 16% YoY
Demand is at the highest level for July in over a decade
Prior to the stay-at-home order on March 26th with interest rates below 4%, demand (the last 30-days of pending sales) was at 6,205 homes pending. The stay-at-home order suppressed buyer activity and demand dropped to 4,351 pending sales in April. Interest rates have continued to drop and reached 3%, a record low and expected to remain low the remainder of the year. Demand typically peaks in May for the Greater Metro Denver market however this year peak demand was delayed to June.Demand (Pending) Summary for July 2020
Prior to the stay-at-home order on March 26th with interest rates below 4%, demand (the last 30-days of pending sales) was at 6,205 homes pending. The stay-at-home order suppressed buyer activity and demand dropped to 4,351 pending sales in April. Interest rates have continued to drop and reached 3%, a record low and expected to remain low the remainder of the year. Demand typically peaks in May for the Greater Metro Denver market however this year peak demand was delayed to June.Demand (Pending) Summary for July 2020
- 7,286 Pending – Up 17% YoY
Here’s a link to additional data if your bored and love numbers. Data for the geeks out there 🙂
So crazy times out there in the real estate world. Especially as a buyer the market can be frustrating. Good news is things change all the time in real estate. Likely things will shift over the fall and winter months becoming more favorable for buyers.
Love to be of service to you in your real estate needs so just give me a call
See you around the neighborhood
Tom Snyder
(Data for this article courtesy of Land Title Guarantee Company)