The Rebound and Moving to Bi-Weekly

May 8, 2020 | CHR WEEKLY

More than 16,000 in-person showings occurred this past week. New listings have more than doubled from week 16, up over 35% from last week, while under contracts jumped to 2019 levels, or the highest we’ve seen in this 9 year run of home value appreciation for this time of year. Is this pent up supply and demand or is it a healthy market showing signs of recovery?

Moving to Bi-Weekly

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 our ultimate area of expertise.

While we will continue to analyze this macro and micro data weekly, to save the inbox of the people we deliver this to, we are going to move our delivery of this email to every other week. We will still post on social channels and the charts will be updated weekly on our websites. If you have questions in between issues, please reach out.  

 

 

 

Snapshot

  • Average days-on-market before a home goes under contract has increased approximately 34% from an all time low of 15.49 days in week 13 of this year, but remains extremely low at an average of 22.3 days.
  • 58% of all closed sales last week sold at or above the original asking price. While down slightly from this year’s high of 60.55%, 58% is almost 6% higher than last year’s high of just over 52%.   
  • 1,412 new properties were listed for sale last week with another 370 homes coming back on the market.  
  • 51.9% (192 properties) of the properties back on the market are from sellers who had previously withdrawn their home for sale and have now re-listed, with the other 178 being contracts that terminated and relisted, which is markedly below the seasonal average.
  • Surprisingly, we continued to see an elevated number of homes withdrawn from the market at 185 properties, a 68% increase over the previous 3 year average. In real numbers, this is only 59 more properties than 2019 and less than 1% of the total market.  

 

 

 

Summary

While optimism for the Denver metro real estate market remains high as we are seeing exactly the rebound of activity anticipated and in some cases higher than expected, we continue to temper expectations of prior years market activity due to many unknown factors.  

How quickly will the US and Colorado economies recover? What inflationary pressures will the US feel from stimulus package funds? What kind of impact will job loss and forbearance requests have on real estate values later this year? How bad is the virus really and how will we respond if there is a resurgence?  

All of these unknowns require a very deep and personal analysis of your best interests when it comes to buying and selling real estate.  

However, we go back to the fundamentals.  

Interest rates are incredibly low, Colorado remains one of the strongest economies in the country and is one of the most attractive places to live in the United States. And, the basics of economics continue to play out in the Denver metro market with demand outpacing supply.  There is currently 1.17 months of inventory of homes available for sale in the Denver metro marketplace and anecdotally, we are seeing a prolific number of competing offers on well priced and well prepared homes listed for sale. 

Buyers and sellers are extremely active in the Denver Metro market and we anticipate a summer of continued home value appreciation in a competitive market for buyers.

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