Signs of a Denver Real Estate Slowdown? Nope.
The average weekly sold price of a home in Denver metro increased approximately 15% over the last 5 weeks, moving from $486,802 to $560,105.
6,858 homes went under contract in June. That torrid pace continues in July with more than 1,700 properties under contract last week alone.
Mortgage interest rates have hit a new all time low with 30 year fixed conventional financing now below 3%. (If you haven’t refinanced in the last two years, contact me and I’ll connect you with a great lender so you can at least look at options.)
Low interest rates and an increasing rate of migration to the Denver area are driving incredible demand, with only an average number of new homes available for sale. The combination has caused a serious supply and demand crisis resulting in skyrocketing prices.
52.28% of all homes sold last week sold at or above the original asking price and 61.48% sold at or above the final asking price (after any price drops may have occurred).
For the fourth week in a row, the number of properties under contract has outpaced the number of new homes available for sale, never before seen this time of year in the Denver market.
Home showings hit an all-time high of 29,945 showings last week and days-on-market has steadily declined since home showings were again allowed in early May, all resulting in months of available inventory at historically low levels.
What does this all mean?
With a contentious election season around the corner, continued concerns about public health, the resulting jobs and economy, and tremendous social unrest across the country, how can one possibly predict?
What we know right now; Denver is arguably the hottest real estate market in the country. We do expect a slowdown given the factors listed above but, with continued migration to Colorado and interest rates anticipated to remain low, the metro Denver real estate market is likely to continue to be aggressive and fast-paced. We anticipate continued appreciation through the end of 2020 with hopes for a modest slowdown.