The Denver metro real estate market has less than one month of inventory.
Sellers are capitalizing on these supply and demand conditions through multiple offers on their homes, driving up prices in many price ranges. Well prepared properties are being sold very quickly, with few exceptions.
Subject to these exceptionally competitive conditions, buyers must be more diligent than ever. In order to be the winning offer, buyers must be prepared to act quickly, submit incredibly well-written contracts, loans should have pre-underwritten approval to facilitate seller confidence and in some cases, buyers should be prepared to accomodate special seller requests like extended closings or inexpensive/free rent back after closing.
Last week new listings were 24.2% higher (1,584) than the average from the same week over the last 3 years (1,275), but substantially offset by the number of properties that went under contract.
1,643 properties went under contract last week compared to an average of 1,094 properties the same week over the previous three years, or a 50.2% increase.
Our prediction is for this trend to continue for at least the next 60 days, during which time we anticipate seeing strong home value appreciation in the Denver metro market.
With the economic, political, health and social issues at hand today, predicting beyond 60 days presents both incredible challenges and seems irresponsible given the guesswork involved. Instead, we will continue to report what we are experiencing and share trends and patterns as they evolve through our analysis.
- Showings per listing reached a 3 year high for week 22 of the year at an average of just over 5 showings per available home. The most active price range remains the $250,000 to $499,999 price range at 6.8 showings per listing with an average of about 2.2 showings per listing in the $2.5-$4 million price range.
- The average price of a home sold last week was $511,050. This average weekly price surpassed the 2019 high for the first time in 10 weeks and only the third time ever.
- Average days on market dropped by 13.6% last week from 25.33 days to 22.3, just above the last 3 year average.
- 53.45% of all homes sold last week sold at or above the original asking price. Given market activity, we anticipate this number climbing fairly substantially over the coming weeks.
- 26,887 showings occurred last week, slightly higher than the 2019 peak of 26,720.