The average weekly sales price in Denver was up over $33,000 last week alone, hitting an all time high of $520,083! The Denver real estate market is as hot as it has ever been!
Last week new listings were 24.2% higher than the average from the same week over the last 3 years. Properties that went under contract increased 50.2% over the previous three years. Still a seller’s market!
Be patient in arriving at conclusions about the direction of the Denver real estate market. What remains to be seen is whether Denver slows in appreciation with continued national job loss, election year, economic questions, forbearance and societal disruption. Or, is Denver the tip of the spear, leading the local and national economies out of a period of hibernation?
Uncertainty about the virus and economy will be with us for a while. More than ever, it is critical to analyze market trends carefully so we can inform clients about the moves that will most likely preserve and build wealth through owning Colorado real estate, which is my ultimate area of expertise.
We anticipated a surge of consumer activity in the Denver Metro real estate market as the public health order ban on in-person showings expired at midnight on Sunday, April 26th. Buyers and sellers were not disappointed as more homes hit the market and showing activity for a Monday and Tuesday was the highest seen yet this year.
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.
The supply v. demand balance in the Denver market appears to remain steady as (1) sold prices continue to edge higher (2) days-on-market for listings remains lower than the 3-year average and (3) the number of showings it takes for a home to go under contract is down by more than 84% (less than 5 showings), for the first time in our recorded data.
This is likely a combination of virtual showings for buyers facilitated by good agents and willing sellers, and indicates that the buyers engaged in this market are extremely serious.
For the moment, Denver is still a strong sellers’ market as inventory remains low and interest rates continue to attract buyers. However, we remain circumspect arriving at conclusions about the direction of the market. So many factors are at play between the stimulus package, lost jobs, shelter-in-place order and direction of the US economy.
Last week, we established a baseline for the Denver real estate market through Week 10 of 2020, or prior to any presumed market impact from COVID-19. Our intention is to write fact based and data driven analysis versus sensational reporting. We maintain that commitment. However, this week is more conjecture as we endeavor to provide interpretation of any patterns we see evolving.
We expect the social and economic fallout of COVID-19 to impact the Denver real estate market. You’ll need reliable information. Not rumor or opinion, but fact-based, data-driven truth. Many homeowners have built substantial equity in their homes over the last few years and they are asking us for advice.
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