Driven by incredible demand and extremely low inventory levels, the Denver real estate market is as hot as it has ever been.
1,804 under contract homes outpaced 1,647 new listings for the first time ever at this time of year. 1,804 homes under contract in a week is by far an all-time Denver Metro market record and 39.3% higher than last week’s 3-year average of 1,295 homes. The average weekly sales price in Denver was up over $33,000 last week alone, hitting an all-time high of $520,083.
What does this mean for buyers and sellers?
Sellers will likely enjoy summer-time appreciation like we have not seen in years past. Typically, home values begin a slight downward trend through year-end, starting in about July of each year with the majority of annual appreciation occurring between March and the end of June. With the economic shutdown and activity limitations from public health orders, it appears at least two months of the appreciation pattern will be shifted into the heart of the summer, 2020.
For buyers, this has become as competitive of a market as ever with a current inventory of 5,976 homes available for sale. This is close to the 2015 record low year, or the year of greatest appreciation in the Denver market, where inventory was at 5,500 at month end. However, buyers and agents have adapted to utilizing technology to create efficiency in the home buying process. While home showings hit an all-time record of 29,670 last week, the number of showings to obtain a contract remains unseasonably low at 16.45.
Sellers should remain vigilant in preparing their home for sale to maximize value, not falling prey to the ease of selling a home in this market. Home values can still be impacted by as much as 10 or 15% (in some cases more) through effective preparation and staging.
Buyers; make sure to work with a great lender. Lenders are key in a market like this where offers must be incredibly strong and appraisals become a challenge in a rapidly appreciating market. Don’t lose your next great home over minimal closing cost or slight differences in interest rates. Get into your dream home by working with local excellence versus well known national brands that often fail to execute at the art of contributing to you getting the home and managing the lending transaction.