Denver’s real estate housing market has remained strong this year amid market forces from COVID and our recurring low supply of housing inventory and high buyer demand. As people change their home preferences due to COVID and working from home measures, Denver continues to be a place where people want to live. That is bringing in buyers from out-of-state, some of which are coming from higher-priced markets. After several years of growth and appreciation, it appears our market cycle upward continues as Denver and the metro area transform into a larger, vibrant city. The downside, of course, is affordability and the data and supply and demand dynamic suggest we may not see relief on this front for a while.
Bottom Line: Housing inventory is at a very low level. Buyers are back in the market. It appears our winter market will be strong given the high demand for housing and not enough sellers. Simply put, we need more houses for sale to meet buyer demand. If you are considering selling, contact me, and let’s discuss your specific situation and how to can achieve your peak result in this market. If you are considering buying a home, contact me, as having the right agent will make a big difference for you in this market.
Let’s take a look at the Denver housing market reports with data from last month.
Denver Housing Market Update — Reported for October 2020
Denver Market Trends by the Denver Metro Association of Realtors
Month-over-month data: September vs August
Metro Denver Housing Market Review, reported in October 2020
By Megan Aller at First American Title.
In her own words:
Rates dropped, again. With rates dropping to lowest historical levels, buyer affordability remains stale if not better despite significant appreciation over last year. We’re in a market where sellers are experiencing some of the best conditions and favorability when listing right now, but also buyers can buy at higher price points from enhanced affordability.
What might happen heading into the 4th Quarter and the election?
In previous years Colorado has seen minimal impact and shift as it relates directly to the Presidential Election. In 2020 style, this year is certainly different. Due to social, political unrest, demonstrations, riots, and of course COVID-19 we have experienced more turbulent conditions and it will be challenging to separate each of these issues to measure their independent effect. In years past, the only affected homeowner pool have been those with higher net worth, and/or those using jumbo financing and relying on their assets to make a purchase. Hand in hand with election season comes stock market volatility- and those who have more substantial investments than average are more likely to press pause to see how the election plays out. Be sure to tune into my weekly market update on Friday’s at 10:00AM to catch the play by play every 7 days.
Detached Single Family Highlights:
- Active inventory remained flat month-over-month up by +1.0%, also down from the same month one year ago by -50.7%. Inventory for the month of September was 2,820 units for sale.
- Contracts accepted, or pending sales, decreased by -12.9% and were up from the same month one year ago by 18.5% with 4,808 contracts accepted in Metro Denver.
- Closed units slowed month-over-month by -2.1% but were up +30.0% from the same month one year ago.
- Days on market held fast at 21 days on market as an average, as did median days on market, coming in at 6 median days to contract.
- Flash sales- or units pending after just one week on the market were reported as 58.4% of all detached units closed in September.
- The competitive nature of the market post-COVID-19 quarantine in September reported that 24.5% of closed transactions sold for a full price offer with 44.8% sold for over asking price.
- Even though average home prices appreciation was up YOY to $591,231- when coupled with the recent drop in interest rates a 30-year fixed loan with 10% down will yield principal and interest payments of $2,207; which is -0.4% less than purchasing an average priced home one year ago.
Greater Denver Housing Market Update
Source: Land Title (September data reported in October)