In-person showings have not been allowed in the Colorado market now for two weeks. Yet in the Denver metro market, we see continued signs of strong market performance despite job market challenges and national economic concerns. Fueled by low interest rates, low inventory and consumer adaptation to virtual showings, more than 63% of homes sold last week, sold at-or-above the seller’s asking price.
Sellers have responded to the restriction of no in-person showings with hesitation. New listings on the market were down to 670 properties last week, compared to almost 1,600 same week last year.
Many sellers and buyers appear to have adapted through technology however, with more than 689 properties going under contract, up almost 20% over the week before.
Fewer listings and continued buyer activity maintains a seller’s market with demand still outpacing supply. Currently, the Denver area has only 1.2 months supply of homes inventory.
Virtual technology has allowed sellers to showcase their homes and buyers to remain engaged in the home buying process in an effective way. Anecdotally, it appears these virtual showings are sufficient to represent the properties listed for sale as the number of homes that “fell out of contract” last week remain at approximate seasonal averages.
Shelter-in-Place & In-Person Showings
Governor Polis announced this week that the Colorado shelter-in-place order would not be extended beyond Sunday, April 26, while calling for an ongoing commitment to social distancing. For real estate, the Governor specifically stated in-person showings may resume starting Monday, April 27.
Since this announcement, the real estate industry has been anticipating a surge of buyers and sellers re-engaging in the market.
At Colorado Home Realty, we continue to encourage virtual engagement in the home buying process as the first and most prudent way of determining which properties are worth viewing in person. When we do view homes in person, we will ask our clients to help us honor social distancing and protection protocols in every home we view.